CorD Magazine No.90

h.e. Mr. cleMeNs kojA,

isidorA ŽeBeljan,

NeW YeAr – neW chAlleNges

Neoclis Neocleus,

Chairman of Executive Board of Piraeus Bank

academic and composer

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Austrian Ambassador to Serbia

serbiA Must shoWcAse tAleNt

FEB ‘12 / ISSUE NO. 90

eFFicieNcY ANd sPeed

interviews opinions news comments events pricE 250 Rsd

NeBOJŠA ATANACKOViĆ, PRESIDENT OF THE SERBIAN ASSOCIATION OF EMPLOYERS

invoices Must Be Paid On Time Overdue payments caused great illiquidity in the economy and thousands of enterprises went bancrupt PRIVATE MEDICAL TREATMENT

Healthcare System Needs reforming Dr. Zoran Stanković, Serbian Health Minister: “Serbia has to fulfil counterbalance between state and private health sector” SlOBODAN TiŠMA, WRITER, NIN’S LAUREATE

Passion rewarded

I did not expect the NIN Award and don’t seek awards as a validation of my work SPORT: BRAZIL EMBARKING ON A LONG AWAITED TRANSFORMATION

Cash Carnival

Brazil’s Ministry of Sports forecasting income of €55 billion from the FIFA World Cup in 2014

toMIslav nIkolIć President oF tHe serBian ProgressiVe PartY

Serbia Should Be

iN THe eu

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COVER Tomislav Nikolić, President of the Serbian Progressive Party

Serbia Should Be In The EU

contents

Page 8

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For now, I see no reason as to why we should stop negotiations and regulating our state in accordance with the EU conditions. Also, the priority is to rely on other countries that are friendly towards us.

IMF Decides to ‘Show its Teeth’

IVAN NIKOLIĆ, Secretary of the Economic Institute

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Serbia Should Be IN THE EU

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faces & places

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C ulture Calendar & News

TOMISLAV NIKOLIĆ, President of the Serbian Progressive Party

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Global diary

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Efficiency and Speed

SLOBODAN TIŠMA, Writer, Nin’s Laureate

H.E. MR. CLEMENS KOJA, Austrian Ambassador to Serbia

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Serbia Must SHOWCASE TALENT

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A short history of Duty Free...

... or One More Irish Contribution to Humanity

ASSISTANT EDITOR: Max Williams, m.williams@aim.rs CONTRIBUTORS: Jovana Gligorijević, Rob Dugdale, Mirjana Zec, Radmila Stanković, Boško Jakšić,Steve MacKenzie Zorica Todorović Mirković,Sonja Ćirić, Vera Didanović PHOTOS: Zoran Petrović, Marijana Šaponjić

Executive Sales Manager Nataša Popović n.popovic@aim.rs PROJECT MANAGERS: Biljana Dević b.devic@aim.rs Vanja Jokanović v.jokanovic@aim.rs Svetlana Okanović s.okanovic@aim.rs

Focus

GENERAL MANAGER: Ivan Novčić i.novcic@cma.rs

Business Dialogue

FINANCIAL DIRECTOR: Ana Besedić a.besedic@cma.rs

Comment page 6

New Year – New Challenges

Profit Generated Abroad

Profile page 82

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T echno Talk

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R omantic RETREATS Travel

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C hill Out

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S tyle Statement Fashion

JRB’s 150th Anniversary

BILJANA ČVERTKOV, Acting General Director of jrb

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ART DIRECTOR: Ilija Petrović, i.petrovic@aim.rs

EXECUTIVE DIRECTOR: Ruža Ristanović r.ristanovic@aim.rs

DEJAN JOVIĆEVIĆ, Director of Energoprojekt Visokogradnja

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C ash CARNIVAL

Private Medical TREATMENT

NEOCLIS NEOCLEUS, Chairman of Executive Board of Piraeus Bank

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EDITOR: Sasa Marić s.maric@aim.rs

TRANSLATION: Snežana Bjelotomić

Sport – Brazil embarking on a long awaited transformation

ISIDORA ŽEBELJAN, Academic and Composer

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F estival TIME European Festivals

EU 28th Member Croatia

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Invoices Must Be PAID ON TIME

NEBOJŠA ATANACKOVIĆ, President of the Serbian Association of Employers

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P assion REWARDED

February 2012

“We Need a Big Rethink”

Angela Merkel, Germany’s Chancellor Davos 2012

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comment

IMF Decides to

‘Show its Teeth’ Ivan Nikolić, Secretary of the Economic Institute

Over a very short period of time, bad news, seemingly unexpected, kept on plaguing the domestic economy. Following the standstill in the European integration process and the delay in the country getting EU candidate status, due to the well-known reasons related to Kosovo, Serbia was publicly reprimanded by the IMF for the first time ever in mid-December

very fair cooperation with the IMF has taken place, nothing like this happened. Without a doubt, this has most likely led to some domestic experts believing that the IMF has turned ‘soft’ in the last few years and has become a benevolent negotiator that is steering clear from tense situations. Some went so far as to accuse the IMF of being an accomplice in Serbia’s economic doom as never in the past has the Fund had such strong objections despite a country’s poor economic performance.

Still, the IMF ‘showed its teeth’ and dispelled all these illusions when, on the 20th January, their Belgrade office issued an

F

irstly, the IMF Board of Directors discreetly postponed the

official statement saying that the first audit of the precautionary

public issuing of their opinion about the first audit of the pre-

credit arrangement had been postponed since the government’s

cautionary stand-by credit agreement that Serbia had con-

borrowing in 2012 would exceed agreed limits. To be more pre-

cluded two months earlier with this leading global financial institu-

cise, the issuing of state bonds and guarantees and the project-

tion. Only two weeks later, the IMF officially confirmed its decision.

ed implementation of this year’s investment projects surpass the

Almost simultaneously, the head office of U.S. Steel in America

agreed deficit and public debt. In simple words, that means the

announced that, in late January, it would make a decision about

IMF has sent a message to the international financial communi-

the destiny of the Smederevo-based Ironworks as the plant was

ty that the Serbian Government is currently not leading a credi-

experiencing poor business results caused by the global eco-

ble economic policy.

nomic downturn. This company is of strategic importance for the

The expected negative repercussions of this decision are al-

country’s economy, its payment balance, budget revenue and al-

ready known – the growth of the country’s risk premium, unfa-

so the prosperity of the local community.

vourable financing of the high public and private debt and budg-

It seems that there are too many coincidences all happening

et deficit, slow FDI influx, more pressure on the dinar exchange rate and review of the ongoing monetary policy expansion despite

at the same time.

The strained relations with the IMF are something that Serbia

clear disinflation tendencies. Negative consequences, coupled with high external risks, which are accompanied by the projec-

needs least at the moment.

The IMF very rarely terminates an already agreed credit ar-

tions of the stagnating economic growth in the EU this year and

rangement with a certain country or postpones a regular au-

even higher uncertainty about the survival of the eurozone, can-

dit. The reason lies in its engagement procedure. The country that is experiencing problems first needs to send the IMF a so-called letter of intention in which it states plan and programme of economic reforms, which is based on why the country is applying for financial help. Nothing is imposed on a country nor does the IMF force anybody to cooperate with it. Accepting and implementing the agreed conditions, as set by the

Some went so far as to accuse the IMF of being an accomplice in Serbia’s economic doom as never in the past has the Fund had such strong objections despite a country’s poor economic performance

IMF, is the best guarantee that serious countries will have eco-

not really be compared to the concrete objections coming from

nomic stability whilst the arrangement lasts.

the IMF. As we have learned through the media, some of these

The conditions proposed by Serbia and subsequently accept-

objections were unforeseen irrigation costs and providing guar-

ed by the IMF were the following: strict adherence to fiscal rules,

antees for investments in the Aleksinac-Novi Pazar gas pipeline.

implementation of austerity measures on all levels and the contin-

This doesn’t even deserve a comment. It doesn’t matter who is

uation of structural reforms.

to blame here – the government or the IMF. The most important

In that sense, changing their stance towards Serbia is somewhat of a precedent. During the last 60 years, which is how long

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thing now is to reach an agreement as soon as possible that can enable the arrangement to continue. ■

Greenhouse

Nataša Savić, Director

Wind protection

Company Rekultivacija i Ozelenjivanje D.O.O. (RIO) is one of the authentic examples how expertise coupled with environmental conscience can bring successful business results. RIO is a company that specializes in taking care of land and green areas. The company has four decades of experience in protecting the eco-system. Thanks to RIO’s activities, large areas in Serbia are being re-included in the nature’s cycle and are afforested or made suitable for agricultural work.

With that aim in mind, RIO has launched a series of campaigns like ’The Children’s Forest’, an environmental project that entails building several dozen play and entertainment parks in towns of Kostolac and Požarevac with children included in planting.

RIO bases its future plans on implementing small- and medium-size commercial environmental projects, from afforestation of inadequately used urban areas to creating conditions for greenfield investments.

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interview toMIslav nIkolIć, PrEsidEnt of thE sErBian ProgrEssivE Party

serbia should Be

IN the eu ■ By Vera DIDanovIć

For now, I see no reason as to why we should stop negotiations and regulating our state in accordance with the EU conditions. Also, the priority is to rely on other countries that are friendly towards us

eXcLUsiVe

T

here is no chance of the Serbian Progressive Party (SNS) and the Democratic Party (DS), forming a ‘wide coalition’ after the spring elections – the leader of the Progressives and the party’s candidate for the position of prime minister, Tomislav Nikolić says in his interview for CorD magazine. Thinking back to earlier situations when, despite support from a huge number of voters he was not given an opportunity to participate in power, Nikolić says that the Progressives are preparing “The widest possible electoral list, never seen before in Serbia,” for the next parliamentary elections that are most likely going to be scheduled for the 6th May. ■ The elections are not even scheduled yet and SNS has already decided to choose you as the prime ministerial candidate providing that you manage to form a new government. What is the underlining message of that decision?

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- That was a wish of our coalition partners which are symbolically demonstrating that they are willing to fully respect the SNS political programme and that they are not going to behave like the current coalition partners of the Democratic Party. Every one of them wanted a piece of the budget for themselves, as well as to run the state and public enterprises. They executed their political programmes independently from the prime minister’s programme. On the other hand, we also wanted to point to the seriousness of the situation in the country and demonstrate our resolute stance towards the election. Our motive is to benefit the state rather than my personal desire to beat Boris Tadić at both rounds of the presidential election. This decision sends a message to the citizens of Serbian and Boris Tadić, as the President of the Democratic Party, that we don’t want to

CoaLiTioN

There is no chance for the Serbian Progressive Party (SNS) and the Democratic Party (DS), forming a ‘wide coalition’ after the spring elections.

CompeTiToN

Our motive is to benefit the state rather than my personal desire to beat Boris Tadić at both rounds of the presidential election.

act contrary to the country’s Constitution. In the event that we win at the elections, our president will not meddle in the prime minister’s business because that is not good. If the president fails to abide by the Constitution, citizens can also choose not abide by the law.

■ So how are Vojislav Koštunica and Ivica Dačić sup-

posed to interpret this message since, according to the current estimates, without their parties you will have a lot of difficulty in forming a government?

- That’s yet another motive. I said to Boris Tadić that I.....

■ ... you are not going to be his

counter candidate at the presidential elections are you?

poLiCY

Our diplomacy will be in the hands of diplomats that are accredited by the countries or organizations and that will be practical a U-turn in our foreign policy.

■ Who do you have in mind if you form a government?

- We have the longest possible list that has not been seen in Serbia before. This list is probably going to be ‘closed’ to political parties soon, but it will see new members joining it on an almost daily basis – these members being various associations, guilds and trade unions. For a long time, I thought that politicians and trade unions have virtually no common ground. Today, when trade unions say that their members have been brutally laid off and cannot make ends meet, it is quite obvious that we need to give them an opportunity to say that in parliament and to have their input in drafting laws, especially in matters that trade unions know best.

Now, I am completely open to the idea of SNS cooperating with trade unions, even forming a preelection coalition with them.

- No. I said to him that if he really wants to demonstrate how much his party worth, he should include his name in the Democratic ■ What about businesses?

Party’s parliamentary list since - The business community has that is where our political duel decided to form a party of its will take place and somebody will own. We did talk about that subcome out of it as the winner, just ject several months ago. I think like in presidential elecMy personal desire is to beat Boris that they should not get tions. We want to find a reTadić at both rounds of presidential involved in politics but despectable Serbian citizen mand that politicians better election. this decision sends a to become the country’s enable working conditions next president, whether he for them, settle their finanmessage to serbian citizens and is a party member or not.

Boris Tadić that we don’t want to act cial obligations toward the In this way we are demstate in accordance with onstrating that we are not contrary to the country’s constitution the law and finally define happy with the way he perceives his presidential function. who is considered a tycoon, i.e. who generated their wealth illegally or by working hard. I haven’t seen their political programme as yet and I don’t know what is it all about. I ■ What about Koštunica and Dačić? am not a priori rejecting cooperation with anybody and we - It is quite evident from my political engagement that I are going to see under what conditions we can cooperate. will never let the party that I lead relegate the position of prime minister to a coalition partner providing that we win at the elections and are given an opportunity to form ■ Did your decision not to be Tadić’s opponent at the a government. In order to dispel any doubts, manipulapresidential election make reaching an agreement of a tions and public scolding, we have already decided that, if coalition between SNS and DS somewhat easier? we win and form a government, I will be the prime minis- That is impossible since our political programme and ter. Whoever wants to join our coalition, whether pre- or public appearances always contain a message that Serpost-election, will have to think about at least two topics. bia needs change. Change will not happen if DS stays in One is our political programme. Our political partners power. Change will not take place if we don’t ascertain cannot criticize the programme during the campaign and what was not done properly and whether it was badly then later wish to form a government with us. The other executed because the government was incompetent or topic is that a representative of their party cannot also be took bribes. Change will not take place as long as we the prime minister. have a judicial system such as this where either you have cordeditorial@cma.rs

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to wait an eternity for a court to pass a sentence in your favour or you lose all your assets in matter of a month since somebody close to the government won the case against you. Change will not happen until we find out who squandered the wealth of this country. There will be no change if there is no responsibility for actions. How do you expect SNS to demand that the individuals from DS who were responsible to be held accountable if DS is in our coalition!

would instruct his people since I have already instructed our branches all over Serbia that they could form any kind of coalition they want. Concerning the coalition between SNS and the Democratic Party of Serbia (DSS), that coalition won’t be pre-election one. After the election, we shall see whether such a coalition would be conducive to SNS’ political programme. I want to establish that kind of relation between whoever wins and a coalition that is being formed.

■ Even if that meant that forming a government would be impossible in that case?

- Even then. For the past four years, I have witnessed the demise of the government because its coalition partners have been blackmailing them. I would never allow myself anything like that.

■ Between yours and Mirko Cvetković’s government what would be the essential difference?

- Number one, a different foreign policy. No longer will there be ‘shuttle diplomacy’. At the moment, Boris Tadić and Vuk Jeremić are in charge of the country’s foreign policy. They are flying from country to country, often to countries that have recognized Kosovo’s independence, and are returning with reports on how those countries actually didn’t recognize Kosovo’s sovereignty - like we don’t have a list of countries that didn’t do so. Our ambassadors have no access to state presidents or governments in many countries because they have been belittled by our line ministry and government. So, in terms of diplomacy, it will be Today, when trade unions say that their members in the hands of diplomats that are accredited by the have been brutally laid off and cannot make ends countries or organizations and that will practically be a U-turn in our foreign policy.

meet, it is quite obvious that we need to give them an opportunity to say that in parliament and to have an input in drafting laws ■ So, how is this partnership going to function, at least in the period leading up to the presidential elections?

- If the Serbian President and his associates took the time to read the Constitution, then our cooperation could be excellent. I did congratulate Boris Tadić on his presidential win the moment I realized that I lost the election, albeit by a fraction. I appreciate anybody chosen by the people. I don’t have any intention of humiliating or undermining him, but I will not allow him to meddle into the activities of the Serbian Government, if the situation is such. He can forget about running the foreign and interior policy. He will be entitled to do that only if the government delegates those tasks to him.

■ Is cooperation with Koštunica possible bearing in mind that you have a different stance on the EU?

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- Two days ago I talked to him about why members of his party have been talking to our branches and asking about whether we would form pre- or post-election local coalitions with them. I have openly asked Koštunica whether he

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■ What kind of issues are they going to advocate?

- Our priority is to determine, together with the EU, whether we are an acceptable candidate for accession and pre-accession talks. It is up to me to finally find out what kind of conditions are put before us, whether these conditions, or at least some of them, are acceptable, and whether we are at a standstill because such conditions exist or because Serbia just didn’t give enough thought to them. So far, Serbian authorities have had a privileged position compared to the opposition and were allowed to do all sorts of things. I think that Serbia should be in the EU and that the government’s main aim should be in fulfilling the membership conditions. That is what Serbia undertook in its Constitution, which says that Serbia is dedicated to European values and that European law is supreme to ours. We are adapting our fiscal and economic system, defence system, state organization and administration to the EU’s demands. Even if, God forbid, there is a breakdown in negotiations with the EU, I would like to live in a country that is regulated as an EU country. So far, I see no reason for terminating the negotiations and not regulating our country in accordance with the EU’s rules. Also,

our priority is to rely on other countries that are friendly towards us, that have raw-materials, energy products and markets for our goods.

ernments were only making empty promises is long gone.

Such governments usually find an excuse as to why their promises have failed, followed by another round of promises they cannot keep. If we promise to participate in the Danube-Morava-Vardar-the Aegean Sea investment, if we promise that we will participate in the investment pertaining to the custom free zone located on the right bank of the Danube River and stretching between Novi Sad and Belgrade, if we promise to make huge investments in re-

■ Which country specifically do you have in mind?

- The Russian Federation. I think that we haven’t progressed much in relations with the Russian Federation, apart from the affinity they have towards us and firm promises, given in the UN Security Council, that not a single decision about Kosovo and Metohija’s status could be made without us first agreeing to it. The relationship between the two countries should be based on their mutual interests.

With all our historic respect, love and understanding, it is the economy that should bind us together. Russia can buy everything that we produce. We have a special free trade agreement that enables us to sell many goods without paying customs duty. We have had this advantage for the past 12 years, but never used it.

Also, I would like to mention Chinese investments, which are acceptable to both the EU and the U.S., so why shouldn’t they be acceptable to us too? I think there are many states that we haven’t had ‘communication’ with in the past eleven or twelve years. Some of it is due to selfcensorship, i.e. so that we are not reprimanded by the EU for having relations with Belarus, for instance, and some of it is because we want to show to western countries that EU membership has no alternative, just like the Serbian president said. So, that’s what led us to where we are today. By sticking to only one road, we have neglected For the past four years, I have witnessed the the others. I am confident that the priority of at least one segment of the government will be to establish re- demise of the government because its coalition lations with many countries in the world, on mutually partners have been blackmailing them. I would beneficial economic ground.

never allow myself anything like that

■ Was your statement about Serbia receiving 100 billion euros worth of investments a slip of the tongue or did you really mean what you said?

- No, it wasn’t a slip of the tongue. I had calculations that showed that almost 80 billion euros worth of investments have been made in Serbia in the last ten years.

■ We had star status following the fall of Slobodan Milošević’s regime.

- I think we should have the star again, but this time in an investment sense. That is our problem – we haven’t used our chances. Some people are saying that Tomislav Nikolić should be reprimanded for promising to bring in investors, but those who failed to bring them, despite their star status, are not punished.

■ What is your plan for attracting investments during this crisis?

- I think that with only a few large investments we can expect to attract up to 100 billion euros. I have to substantiate everything I’ve said and will say. The time when gov-

newable energy sources and revive our agriculture, then we will have to prove it all.

■ You haven’t made any concrete promises about Kosovo.

- You know, there is a different level of responsibility for the government and the opposition. The authorities are the ones to draft and implement plans and programmes.

The opposition reacts to those plans and programmes and seldom supports them. It usually criticizes them because it searches for negative aspects. Kosovo is a problem that should be solved via a consensus in Serbia. As a member of the opposition party, I see no such consensus since nobody wants to call me to discuss it. If we win, I will try to have a consensus by inviting the representatives of all parliamentary parties to talk about what we will do in Kosovo. I have never seen a plan, programme, set of measures or daily implementation of decisions about Kosovo, so I can’t criticize or oppose them. However, I have been constantly receiving demands from the government, which has reversed our political system, to tell them what I would do in Kosovo. cordeditorial@cma.rs

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■ I guess the electorate should know that in order to make an informed choice.

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couldn’t talk with HDZ. If you ask me, we could cooperate with Croatia as our neighbour providing that the country has fulfilled all of the conditions for them joining the EU, is treating all of its citizens equally and is protecting the assets of Serbs regardless of whether they live in Croatia or not. My hands are not tied by the past. We need to talk about all the problems. Negotiations about Kosovo need to be at the highest level. You cannot convince any citizen, even a very young one, that Borko Stefanović can single-handedly resolve the issue of Kosovo’s status.

Whoever appointed him to that position should also attend the negotiations. Of course, such people should not sit with Hashim Thaci at the same table until it is ascertained, without a doubt, that he did not commit crimes against Serbs. We can talk to any other person elected by the people. Being a politician is a profession where you have to talk to everybody.

- They will have an informed choice. The electorate do not need to make that choice today. They expect a solution for Kosovo. They don’t expect it from me nor am I under any illusion that I am able to decide about Kosovo’s destiny. I can help the people in seeking to find a solution. A person has never told me what kind of solution it has or called me for a consultation, but they are asking me to tell them my solution so they can criticize it. If I said, for instance, that I would accept all the proposed conditions since I wanted us to live better, I would immediately have a problem with the electorate since the authorities would use that to turn the media against the ‘traitor’ Tomislav Nikolić. If I said that I wouldn’t accept any of the conditions, then the authorities would presume that I was a war monger. If I, as an ordinary mortal man, ask the authorities what they want to do, I will be ■ Even with Šešelj? the only one doing that since none of - I know that there isn’t a way for the the press have ever asked two of us to talk to each I don’t have any intention of Boris Tadić what are we other, since, in the last three going to do in Kosovo. I humiliating or undermining him (Boris and a half years, his contact have just given you both with me has been reduced Tadic), but I will not allow him to sides of the spectrum in meddle in the activities of the Serbian to insults and, more impororder to demonstrate that tantly, history is repeating Government, if the situation is such itself – the opposition is I can understand the difficult situation that the person running the state is in, but I again being prevented from coming to power. Of course, I really cannot understand why he cannot shift some of the will never forget the insults and curses which were said in responsibility to the opposition party. front of my grandchildren since I was his best man, I am a godfather to his grandchildren and I will never say anything bad about his family. Politically speaking, I don’t know ■ What would you do first if you were appointed as how the Radicals can make it in to parliament again after prime minister? the elections so I don’t think that DS can count much on - We need to talk to the EU immediately. The next day we their help. They could possibly only count on them during can talk to the Russian Federation. It is very clear that we the election campaign. They print newspapers and books are three steps behind Croatia and that is inexcusable. It is against me and not against Boris Tadić and, by doing so, unfair that Croatia has become an EU member and Serbia they are siding with him. For me, that chapter is closed. still hasn’t obtained even candidate status. This is not the real situation ‘in the field’. They have turned a blind eye in the case of Croatia. On the other hand, Croatia will soon ■ Do you think that it is worthwhile being the prime have the right to veto every decision that concerns Serbia. minister during the Kosovo crisis and the difficult ecoAnd, in that situation, when sport supporters from the two nomic downturn? countries are still fighting amongst themselves and when - If you would ask an ordinary citizen that question, he or both groups are singing jingoistic songs, it is easy to preshe would say no. If you ask a politician, he would tell you sume that Croatia is not going to be in favour of Serbia’s that he lives for that. I know it comes with a price. With integration in the EU. regards to my family, they really want to see me spend more time at home with them. But with responsibility comes the feeling that you should leave behind a legacy.

■ How would you change that?

I would love for my legacy to be that I did a good job and - We need to talk about that with the new Croatian Govdid something for Serbia. ■ ernment. I think it is good that Croatia has changed. You

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auction see auction south east europe office@auction-see.com; www.auction-see.com

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Earthquake “The State Audit Institution complains that the City of Belgrade did not provide the funds to help quake-hit Japan couldn’t be accepted, since the City could not have predicted the earthquake.”

- Dragan Đilas, the mayor of Belgrade.

global diary

appellation-of-origin disputes with the state-owned brewery over the use of the Budweiser brand. Experts say AnheuserBush, which produces the American Budweiser brand beer, most likely hopes that the acquisition may improve its chances of acquiring Budvar in the case of a privatization of the stateowned company, and resolve the Budweiser trademark issue.

Eastman Kodak File for Bankruptcy In a bid to survive a liquidity crisis after years of falling sales, Eastman Kodak Co went into bankruptcy last month

Diving Enthusiasts The once-iconic photographic film pioneer, which tried to restructure to become a seller of consumer products like cameras, said it had also obtained a $950 million (€732.8 million), 18-month credit facility from Citigroup to keep it afloat.

“The board of directors and the entire senior management team unanimously believe that this is a necessary step and the right thing to do for the future of Kodak,” chairman and chief executive Antonio M. Perez said in a statement.

Kodak said that it and its U.S. subsidiaries had filed for Chapter 11 business reorganization in the U.S. Bankruptcy Court. The filing did not cover non-U.S. subsidiaries, it added.

When the outside temperature drops to below zero, water reservoirs in Estonia are covered with ice, Estonian diving enthusiasts seek new challenges indoors While swimming pools do not normally provide much excitement for the seasoned diver, playing checkers underwater makes indoor diving more interesting.

In January, 42 divers from all over Estonia gathered for the third championship of underwater checkers. It seemed however, that participants were more united in their desire to dive rather than play serious checkers.

Every diving enthusiast is eligible to participate. There are neither age nor gender restrictions and participants admit there is no real need to train for this national championship.

A year ago, the same divers’ company set the Guinness world record, with 55 contestants playing checkers underwater at the same time.

gling firm. A statement released by the company said he had also stepped down from the boards of Yahoo Japan and Alibaba Group Holding Ltd.

Co-Founder Quits Yahoo co-founder Jerry Yang (43) has resigned from the board of directors and all of his other positions with the internet firm Jerry Yang, who jointly started the company in 1995, had recently been criticised by shareholders who claimed he was impeding efforts to revive the strug14 |

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Analysts say Yang’s exit might speed up discussions about a multibillion-dollar deal to sell some of Yahoo’s prize assets - its 40% slice of China’s Alibaba and its investment in Yahoo Japan.

In a letter to Yahoo’s chairman of the board, Yang said he was leaving Yahoo to pursue “other interests outside of Yahoo.”

While respected in the in-

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dustry as one of the founding figures, former chief executive Yang was criticised by investors in 2008 when he rejected an unsolicited takeover bid from Microsoft Corp worth about $44bn (€34bn).

Its share price was subsequently hit by the global financial crisis.

Its current market value stands at around $20bn (€15.4bn).

Budweiser purchases Budějovický Měšťanský The American brewery company Anheuser-Bush, which for decades has been in a trademark dispute with the Czech state-owned Budějovický Budvar brewery, has purchased the Budějovický Měšťanský brewery, which is also in trademark and

Anheuser-Bush and Budějovický Budvar have been leading a fierce legal battle for decades. The term Budweiser comes from Budweis, the German name for České Budějovice, the South Bohemian town where Budvar is produced.

Museum of Clean Don Aslett, America’s cleaning expert, after more than 58 years in the hygiene profession, has created his lifetime legacy The Museum of Clean, located in the southern Idaho city of Pocatello, US. This first ever and one-of-a-kind museum collects, preserves, and displays artefacts and records the little-known history of cleaning. It gives visitors a new view of clean, its power and omnipresence in our lives. It highlights more than 3,000 treasures of the past and reveals the progress of cleaning up ourselves and the planet over the centuries.

Visitors can find tools, machines, appliances, art, posters, and dramatic presentations that add up to a look, feel, hear and “try-itout” experience.

IMF Currently there are about $380 billion in the IMF’s account for lending to the collapsed economies of EU countries. If the crisis deepens, it is estimated that the first aid required would be in the region of one billion dollars.

Prime Athens Shop Space for Nike

Nike Inc., the world’s largest sporting-goods company, agreed to rent prime retail space in the centre of Athens for at least 43% less than the previous tenant

Nike, named after the Greek goddess of victory, agreed to lease 775 square meters from the state-controlled Greek civil servants pension fund.

Nike will pay €57,000 a month for the first year to lease the ground floor, mezzanine and two basements in a building at 1 Ermou Street and Syntagma Square, CBRE Atria said. The previous tenant, Geniki Bank SA, the Greek unit of France’s Societe Generale SA, paid €100,000.

“International retailers are taking advantage of lower rents and higher vacancy rates in Greece to establish networks that they couldn’t have created previously,” said Yannis Perrotis, managing director of CBRE Atria. “We’ll know the outcome of private sector involvement before the year-end,” he said. “After that, Greece’s economy will move into recovery, so large internationals are positioning themselves now for a future change in the downward trend of consumption.”

Luxury Housing for Officials

The Office for Presidential Affairs is to spend $136 million (€104.9m) on townhouses for top officials on the elite Rublyovo-Uspenskoye highway outside Moscow, Kommersant reported “The Office for Presidential Affairs has already prepared and coordinated with all the relevant agencies concerning a government project to purchase homes belonging to the Laboratory of Country Life company in the village of Polyanka Deluxe,” the paper wrote.

The newspaper noted that to purchase the houses, the Office for Presidential Affairs will sell some of its assets at

Apple opens its biggest store in Asia

the Sheremetyevsky hotel complex worth up to $170 million (€131.1 million). Polyanka Deluxe is located 21 kilometres outside of Moscow and borders on the elite village of Gorki 8. Polyanka Deluxe consists of 72 cottages with a total area of more than 20,000 square metres. “They are buying houses in this village as company-owned apartments for officials who will move there after the transfer of federal departments and agencies to the ‘new Moscow’ territory,” the paper said.

New London Airport

If London Mayor Boris Johnson’s plans come true, London will have a new airport that will solve the problem of permanent chaos that passengers face at Heathrow airport.

The new airport in London - Thames Estuary - ‘could be built in six years’, said London Mayor Boris Johnson, arguing that as long as there is “political will and energy” the site could be operational in a very short space of time. Hong Kong airport took just six years to build at a cost of €15.4 billion.

“There are sovereign wealth funds around the world who would be prepared to pay for the project,” said Boris Johnson. ”An airport in the Thames Estuary would lead to billions of pounds of investment from countries such as Brazil and China. The additional hub airport would radically increase foreign direct investment into Britain from fast – growing developing countries,” he said.

APPLE Inc. opened its largest retail store in Asia, the third in Shanghai, bringing its total number of retail stores to five on China’s mainland

About 300 employees greeted customers while wearing specially designed T-shirts at the store, located at the end of a pedestrian street, one of the most bustling areas of the city.

“I started to queue for the opening at around 10 pm on the night before as I wanted to see what was new in the shop at the earliest time,” said Cui Lizhen, who bought four accessories for his iPod and Mac for around 1,500 yuan (€180.5).

The US company opened its first store in Shanghai last June and launched another one on in September. Apple had said it hopes to open 25 stores on the mainland China and in Hong Kong by February 2012.

In China, shipments of the iPhone, Apple’s best-selling product, jumped to 2 million in the second quarter, compared with 300,000 a year ago, according to the technology research agency Gartner.

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interview H.e. Mr. cleMens koJa, austrian amBassador to sErBia

Efficiency and

speeD M The Austrian Ambassador to Serbia, H.E. Mr. Clemens Koja says that the decision, made by the European Council in December, was good and useful since it eliminated all dilemmas and shined a light on exactly what conditions European member countries want Serbia to fulfil in order to join the Union

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r. Koja thinks that, coupled with good will, it is quite possible for Serbia to be granted candidate status in March 2012. As one of the diplomatic corps veterans and as a representative for a country which has over 400 companies in Serbia, Ambassador Koja sees a great chance for the further development of SerbianAustrian economic cooperation through multilateral collaboration and the implementation of regional projects which, to a large extent, depend on regional reconciliation and political cooperation.

■ In the last few months, the highest Austrian

and Serbian officials have had much contact and meetings. They agreed that there was a need to resolve ‘the Kosovo issue’ in order to create con-

sTaNCe

Austria has been consistent in advocating Serbia’s integration into the European Union and hence wants to help Serbia with overcoming the obstacles in its path.

CoNCerN

Having a complex financial situation is no reason to panic. Politics, and not simply the power of Austrian companies, also has bearing on ratings.

CooperaTioN

Together with Serbia, we’ve been working hard on launching a flagship project which is to be implemented in the Serbian section of the Danube.

ditions for Serbia to start its accession to the EU.

terms of granting Serbia candidate status?

- Yes, there were quite a few ‘contacts’ that just validated the firm friendship between Austria and Serbia, as well as official visits by the Vice Chancellor, the State Secretary Wolfgang Waldner and the Secretary General Johannes Kyrle to Belgrade. Then following this was the visit of President Tadić to our Federal President and to come is the visit of our Social Affairs Minister to Belgrade, who is coming to sign an important agreement. These meetings cover a wide range of topics including the issue of Kosovo. Austria has been consistent in advocating Serbia’s integration into the European Union and hence wants to help Serbia with overcoming the obstacles in its path. The conflict with Priština is certainly the biggest barrier at the moment.

- I think that the decision that the European Council made in December gives Serbia a great advantage. It is now very clear what the European Union, as an entity of 27 member states, expects from Serbia: • Implementing accomplished results • Cooperating with EULEX and KFOR • Kosovo’s participation in regional forums.

All participants (Serbia, Kosovo and the European Union) have been engaged in working on all three points with the aim of making progress. With good will it is quite possible to accomplish results, hence we think that a positive opinion in March is feasible. The freedom of movement is of essential importance and it would be good if the roadblocks were removed.

■ Do you think that, given the circumstances, Serbia could have done more in December to obtain candidate status?

■ What is Austria’s stance

on Serbian candidacy today, bearing in mind that certain European countries think that - I think so, since nobody reSerbia should definitequired Serbia to recnobody required serbia to recognize ly be granted candiognize Kosovo’s indeKosovo’s independence. What we are date status in March? pendence. What we are

talking about here is establishing good - Austria’s stance on talking about here is establishing good neighneighbourly relations for the benefit of Serbia has not changed. bourly relations for the the people living in the region benefit of the people ■ Bearing in mind the complex economic situation that, according to the living in the region – Albanians and Serbs in Kosovo, recent credit ratings, has gripped France and Ausand the Serb and Albanian minorities in south Serbia. I tria, to what extent can that issue affect Austrian am primarily referring to the young people living there who need to have a bright future. The roadblocks, that investments in the region, particularly in Serbia? were put up last autumn, are hurting their future pros- Having a complex financial situation is no reason to pects so, maybe, the Serbian Government could have panic. Politics, and not simply the power of Austrian been more consistent in the past when it came to the companies, also has a bearing on the ratings. As you removal of these barricades. If that happened, I think probably know, back in December, a big Austrian investhe chances for receiving a positive opinion from the tor – Swarovski – signed a memorandum stipulating European Council would have been greater. construction of a large production plant in Subotica despite the tense financial situation. Several weeks ago, PORR revealed its plan to build a railway sleeper factory ■ After his recent meeting with President Tadić, Fedin Svilajnac. Those decisions made by these two compaeral President Heinz Fischer said that he expected nies are a validation of Austria’s continuous interest in Serbia to receive EU candidate status in March. You the southeast European markets. live here and Austrian soldiers are directly involved in maintaining peace in northern Kosovo. In your opinion, how realistic it is to find a solution for Kosovo by March that would be acceptable to the EU in

■ Multilateral regional cooperation is a general

trend in the development of inter-state relations. cordeditorial@cma.rs

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One of the cooperation projects is the Danube Initiative, which is supported by Austria. Is enough attention being given to this project considering its great potential?

- It is evident that Austria and Romania’s initiative about launching a strategy for the Danube region has achieved great success bearing in mind that all neighbouring countries have accepted it with great enthusiasm. This is a European Union strategy that includes non-EU

lateral cooperation and I think that a lot more could be done in that area. I do hope that regional reconciliation and political cooperation initiatives will influence both economic and social aspects.

■ There are several hundred Austrian companies and a few banks operating in Serbia. Do you think that Austrian FDIs in Serbia will grow or is the investment process going to slow down in the next couple of years?

- There are over 400 Austrian companies in Serbia at present. Austrian companies are the biggest foreign investors in Serbia, and a daughter company of the Austrian telecom operator A1 Telekom – VIP Mobile - is the biggest Greenfield investor. Serbia is a logical neighbouring market for Austria so our companies are engaged in longterm strategies too. Nobody can become a big investor if it plans to leave a market in a few months.

Further investment pace and volume will depend on the overall economic situation, but, as has been said before, it will also depend on whether Serbia will manage to present itself as an attractive investment country. This entails continuation of the reforms, reducing red tape, expediting the functioning of the legal system and Serbia’s persistence on its way to EU membership.

■ Many Serbian citizens live and work in Austria since Austria has liberalized its conditions for hiring foreign workers. With the current economic situation in mind, do you think that the issuing of work permits for foreign workers will slow down and what kind of status are Serbian citizens, on temporary work engagements, going to have?

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- Through the so-called ‘red-white-red’ card, Auscountries, which is a rather pioneering endeavour. As the Austrian Ambassa- The further investment pace and volume will dor in Belgrade, I am especially pleased depend on the overall economic situation, but, to see that the Serbian Government acas has been said before, it will also depend on tually ‘breathed life’ into the strategy.

Now, it is of utmost importance for the whether Serbia will manage to present itself initiative to be implemented through as an attractive investment country concrete projects. Together with Serbia, we’ve been working hard on launching a flagship tria has introduced a new and more flexible immigraproject which is supposed to be implemented in the tion system. The aim is to enable a qualified workforce Serbian section of the Danube this year and which is from non-EU countries, and their families, to permaworth around 20 million euros. nently emigrate to Austria in line with the labour market criteria. For many Serbs, who already live in Austria, this will also provide an opportunity to bring their fami■ There is also the Cargo 10 project and many other lies with them through a simplified procedure, i.e. it will forms of regional countries establishing links that give them a chance to work legally in Austria. Hence, could substantially help in overcoming the economic according to data from the 30th September 2011, it is difficulties that the region has been facing. not surprising to see that out of 255 issued cards, some - I absolutely agree. There is great potential for multi-

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were issued to Serbian citizens. This puts Serbia in 5th place, which speaks volumes about positive effects.

■ Austria has become very appealing to the Serbian and other students in the region. How big of a burden is that to the Austrian educational system?

- I don’t think that students from southeast Europe are a great burden to our educational system. Realistically speaking, and bearing in mind the cost of scholarships, living costs etc. it is not that easy to study in Austria.

Let’s not even mention learning the language. Serbian students, who are studying in Austria thanks to various scholarship programmes, are excellent ambassadors for the country, while the social and scientific exchange between southeast Europe and Austria holds great importance.

been said hundreds of times and we intend to keep our word. Also, every country needs to show its readiness to cooperate, not only with the European Union but within the region too. We know that is difficult because of the war in the former Yugoslavia, but they are your natural partners. You have to cooperate not only with Croatia, Bosnia, and Macedonia, but also with Kosovo. I think that CEFTA is a very important platform for this, and so are other projects like the Danube Strategy.

■ The European Commission has recently suggested that certain mechanisms be put in place which could lead to the abolishment of visa-free regimes for countries that provided the biggest number of asylum seekers abroad. Should Serbia worry about this?

- This is as a result of concern for having fake asylum seekers, i.e. people who want to be granted asylum only for economic purposes. There are four countries that saw a great influx of such asylum seekers – Belgium, Luxembourg, Sweden and Germany. It is interesting to mention that Austria doesn’t have this problem. The European Commission is not the group that is concerned, EU countries are also worried so it is reCroatia is a good example of how success ally important that we have a fast response mechanism in case we need it. The existing is realistically achievable. It is very procedures are complicated and EU meminteresting to me to see how emotional bers need to be given a chance to react in the people living here get when it comes a faster manner. I don’t think that this is a threat to Serbia. to the issue of euro-integration

■ The majority of Croatian citizens voted in favour of their country joining the EU. What kind of message does that send to countries that are waiting in front of the EU’s ‘door’?

- I think that the referendum results and the imminent accession of Croatia to the EU sends an important message that any west Balkan country can join the EU and have a European future. They don’t only have a theoretical chance, as was the case in the last ten years, but a very real chance providing that they fulfil criteria and successfully complete labour-intensive pre-accession negotiations. Croatia is a good example of how success is realistically achievable and that is a very positive message indeed. It is very interesting to me to see how emotional the people living here get when it comes to the issue of eurointegration. I am referring to the reactions when people wonder whether the EU really wants their country? Of course the EU wants the west Balkan countries. This has

■ We could say that the Danube Strategy is one of the projects that our government took very seriously.

- Of course. And that is mostly thanks to Božidar Đelić. Serbia appointed the Deputy Prime Minister as the national coordinator of the Danube Strategy, while my country doesn’t have such a high ranking official to coordinate the strategy. Our diplomats are in charge of that. Serbia has made some very concrete proposals. Looking at the media reports, you would think that there is a slowdown in the implementation of the Danube Strategy, but that isn’t so. We are currently at a stage where we are elaborating infrastructure projects in Golubac and Veliko Gradište, worth between 80 and 90 million euros. In addition, tenders and other procedures, that are not interesting to the media or are that visible, are pending. We are actively working on the Danube Strategy, which is not only important for advancing relations between Serbia and the rest of Europe, but also for the west Balkans too. ■ cordeditorial@cma.rs

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interview neboJša atanackovIć, PrEsidEnt of thE sErBian assoCiation of EmPloyErs

Invoices Must Be

paiD ON time ■ By Mirjana ZeC

In the last few years, the payment of purchased goods and services has ‘stretched’ over 200 days and caused great illiquidity in the economy while thousands of small enterprises and shops have had to close

I

Efforts invested by the business community and the Sern the last five or six years, there has been an unusual bian Association of Employers in trying to make the governpractice in Serbia - failure in paying invoices for purment implement measures and force defaulters to settle chased goods or acquired services on time. This ‘pattern’ their financial obligations didn’t yield any results. That was originated from large wholesalers that paid their supuntil the European Union adopted a special directive acpliers five or even six months late. Soon after, utility and cording to which payment of invoices by companies, the pripublic companies followed in their footsteps. Small and mevate sector and all other comdium enterprises and entrepreAll companies, including sMes, mercial debts had to be settled neurs were being owed money will have to pay their liabilities in in no longer than 60 days. In the by retail chains and public enterprises for over 200 days, so no longer than 60 days unless the case of the public and state secthousands of businesses had to companies have agreed otherwise tor, the deadline is 30 days. This directive will come into force close down. Such behaviour beamongst themselves on the 1st January 2013 and is came rampant with the onset of applicable to both EU countries and countries that aspire the economic downturn in Serbia, so buyers tried to justify it to become EU members, including Serbia. CorD is talking by saying that they didn’t have enough money as they were to the President of the Serbian Association of Employers, also forced to allow their consumers to pay for purchased Nebojša Atanacković about how to implement this directive goods through deferred payment. Public and utility compaand what activities the government is going to undertake nies said that others also owed them a great deal of money, when it comes to settling liabilities on time. which amounted to much more than their own debt.

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CorrUpTioN

We had laws, but they weren’t implemented and nobody exercised any control. How can I not suspect foul play when the people who should have controlled the process were probably bribed not to do so!

iNeQUaLiTY

Since a small company doesn’t have enough capacity to force its large buyer to pay for goods, it is then forced to turn to banks and borrow money, while paying exuberant interest rates.

eU

The late payment of invoices happens in the EU too. In certain member countries, being late with a payment is treated as a criminal liability, which is punishable with a prison sentence.

should finally come into force in May. If everybody adheres - From the moment the EU directive was drafted, we knew to the deadlines, the law could even be adopted before the that, due to the situation on the Serbian market pertaining elections. However, if everything is postponed for the auto settling liabilities, the full implementation of the directive tumn, then this year will be lost when it comes to enforcing would not be possible. Hence, we have made a proposal for regular payment which means that the ‘big’ will continue the payment deadline to be 60 days. Last year, the payment living off the ‘small’. terms were up to 240 days, so shortening that period to 60 days would be a big win for us. The late payment of invoices ■ According to the information you know of, could you tell happens in the EU too, especially in the state-run sector.

In certain member countries, being late with a payment is us why big companies, like retail chains and public and treated as a criminal liability, which is punishable with a utility companies, are not more conscientious in settling prison sentence. Every state has measures to penalize detheir liabilities? faulters and these measures are much - If you don’t pay for something on more austere than in our country. time, then you are using that money Atanacković also says that certain for free. Instead of these default combusiness associations in Serbia have panies asking for a bank loan if they joined the initiative, so, last autumn, are short on working capital, they the government adopted a bylaw which choose not to pay for goods or services stipulated payment terms of no longer and use that money as a form of a loan than 60 days. However, as it turns out, but without interest rates or other rethis law was non-binding and applilated expenses. Since a small company cable on a voluntary basis. The public doesn’t have enough capacity to force sector immediately came up with calits large buyer to pay for goods, it is culations on how it couldn’t then forced to turn to banks serbia’s privatization and overall be expected of them to be and borrow money, while more payment efficient untransition is painstaking, and a lot has paying exuberant interest less businesses and citizens been needlessly destroyed with nobody rates. This is the only way for paid their electricity, water them to pay their taxes, state coming up with new solutions. this is contributions, salaries, their and gas bills on time. very conducive to the corruption that is partners etc. Therefore, they - All in all, the bylaw is still do this while they can, which spreading throughout our society not being implemented in is usually for a few months. practice. In the meantime, we found out that a law is beAfter that period, they are forced to declare bankruptcy or ing written that would solve the problem. We are pleased liquidation, they have to fire their employees and, without to hear that we are going to have a law that will deal with any revenue, they become a burden to the state. There have the issue so we offered help to the Ministry of Economy and been tens of thousands of such examples in the last few Regional Development, which has prepared the draft Law years. Nobody helped them and, what’s even worse, nobody on Financial Settlement Deadlines. The text of the law conreprimanded large companies for their behaviour. tains a proposal according to which all liabilities between companies have to be settled within 60 days providing that ■ Do you know of any examples where liabilities were setthe companies have not agreed otherwise. tled in court?

- Yes, that happened too, but everybody quickly gave up on ■ Are you happy with the solution and when do you expect it. A lot of time goes by while a small company waits for a this law to come into force? court to pass a sentence, and, while waiting for the sentence, it usually has to declare bankruptcy. Court proceedings are - The public debate is pending and, according to what we extremely lengthy, and big companies have enough means have heard, parliament is supposed to adopt the law by to drag them out. Small companies find legal proceedings March. Also, an additional two months would be needed to very expensive, particularly if they have to wait for a long carry out the preparations for its implementation so the law cordeditorial@cma.rs

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time for a verdict. But they do like the solution offered by the draft Law on Financial Settlement Deadlines. The law says that courts will have to be fast and efficient in their decisions since they will have to abide by the urgency rule. As we have been told, the relevant courts will have to launch proceedings within a week or two at the most. On top of that, I have to underline that penalties for the persons and companies responsible that are defaulting, are very severe indeed. The responsible party will have to pay a penalty that ranges from 50,000 to 150,000 dinars, and the penalties for companies ranges from 5% to 20% of the unsettled amount, in addition to the legal expenses that they will have to pay.

■ Who is going to supervise the implementation of this law?

coming up with new solutions. This is very conducive to the corruption that is spreading throughout our society. I cannot understand why a company, which hasn’t been paying taxes and contributions for years and pays its employees in cash, is still able to have a huge turnover. Then, all of a sudden, it is forced to declare bankruptcy and its owner, now a very wealthy person, sets up a new company and starts ‘looting’ the state all over again. We cannot say that there were no laws to regulate such activities and their executors. Of course, we had laws, but they were not implemented and nobody exercised any control. The culprits were not penalized and the persons responsible for supervising the whole situation simply failed to do their jobs. How can I not suspect foul play when the people who should have controlled the process were probably bribed not to do so!

- The plan is for Tax Administration to do that, particularly in the cases of public ■ What about political affiliations and companies being late in settling invoices issued by private businesses. This makes friendships? sense since the tax authorities have the - Yes, there is that too. In our country, information on whether taxes and other governing parties are becoming increasfinancial obligations are being paid. The ingly important. If not on the state level, idea for the banks to control the payment then in towns and local communities, of taxes and related obligations municipalities and counties.

We had laws, but they weren’t was wrong to start with. A big And while they bicker publicly, mistake was made when the implemented and nobody exercised secretly they are watching each General Accounting Office was any control. How can I not suspect other’s backs i.e. “Leave my abolished. The Office did not alfriend alone, and I will leave foul play when the people who low for a single salary to be reyours.” That is also a form of imbursed without companies should have controlled the process corruption - a political one. The first paying taxes and other were probably bribed not to do so! state’s lack of care is inexcuscontributions. Now, companies able since we are not talking are paying these financial obligations whenever and howabout a relation between two people or two companies but ever they like. The list of debtors, which was released by the the country’s economy, thousands of people losing their jobs Tax Administration, revealed a lot and it is quite interesting and the state budget bleeding money. The state is obtaining to see the names of the companies and individuals who are loans left, right and centre and pushing us all deeper into on it and are not as well known as certain bankrupt banks. indebtedness, as opposed to exercising better control over Even when you look at these ‘smaller’ unsettled amounts, its assets and making our lives easier. you cannot help but feel that so much money has been wasted. We are all wondering how is it possible to tolerate these ■ We often adopt laws that closely resemble those in the companies not paying their financial obligations for years EU, but we fail to implement them. Could the same situaand their owners not being adequately punished. tion happen with this law too?

- If Serbia’s state authorities continue behaving in this way ■ Do you think that a lack of proper laws is the main culthen the law will become yet another dead letter. If that happrit for such latency in payment and misuse? pens, we need to openly admit that this is a lawless country and that everything is resolved through force. Every citi- In our country, the old system was rapidly replaced with zen needs to know that the electricity or gas they consume a new one, and, in the process, relevant institutions have needs to be paid for, just like the Electric Power Industry of not been formed and regulations drafted that would aid Serbia (EPS) needs to pay the company that lays electrical that transition. In such situations, the weakest and the most cables. We have exhausted all the opportunities to obtain honest are the first to go down. The ‘big players’ always find new loans. We have to turn to ourselves around and start a loophole. Our privatization and overall transition is pains‘cleaning up’ our country. ■ taking, and a lot has been needlessly destroyed with nobody

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Croatia

EU 28th Member The referendum in Croatia on whether to join the European Union has come out in favour. If all goes to plan, the state of 4,300,000 people on the eastern shore of the Adriatic Sea will become the 28th member of the bloc by July 2013. But although two thirds of voters said ‘yes’, just 44 percent of those eligible to participate did so in ballot. This seemed to point to resignation rather than enthusiasm Voting turnout, however, was low, stream as well barely scratching half the electorate, alas Nato. though analysts said the figure was inacSenior policurate because the electoral rolls remain ticians in Zagreb loaded with “dead souls”. But participation described the was considerably higher in a general elecreferendum as Croatia’s President Ivo Josipović (center), Prime Minister Zoran Milanović tion last month. historic. (left), and the Parliament speaker Boris Sprem “The turnout could have been better,” Only once said the Prime Minister and social dembefore in the country’s 20 years of inderoatia has voted to join the EU ocrat leader, Zoran Milovanovic. “It’s not pendence has a referendum been held, by a sweeping majority, deliverbrilliant. Probably because of the situathat to secede from Yugoslavia in 1991. ing a greater than expected yes tion in the country.”

Despite the EU being at its lowest ebb vote in a referendum watched Croatia’s economy is stagnant with arguably ever, leading Croatian figures nervously in Brussels for fear of a backlash. growth of just 0.4 percent. Salaries are are relieved that the country is bolting With the EU facing its worst ever crisis, low, the average the equivalent of 715 euinto the union before the doors close on with the sovereign debt emergency sapping ros. Some 18 percent of its workforce is further expansion. its self-belief, and Greece’s membership of unemployed. And in these circumstancThe surge in enlarging the union by the euro in doubt, there were fears that the es its debt, higher than its income at 102 12 countries over the past decade is pessimism engulfing Europe would damppercent of its GDP, is heavy. Croatians, who over. Turkey’s bid to join — it started neen pro-EU sentiment in Croatia. Although are already struggling, are unlikely to acgotiations at the same time as Croatia in two thirds of voters said ‘yes’, just 44 percept future restructuring willingly.

2005 — has stalled. The rest of former cent of those eligible to participate did so in ballot. This seemed to point to resignaCroatia remains under close watch. Romania and Bulgaria’s tion rather than enthusiasm. difficulties meeting the EU criteria remain highly relevant, and However the referendum on joining the though all 27 of today’s members are expected to ratify the latest EU next year as the union’s 28th member was supported by up to 67%, accordaccession treaty, Brussels is keeping up pressure on the latest ing to official projections based on around hopeful to maximise its potential 40% of the vote.

Opponents of Croatia joining the EU have Yugoslavia and Albania are keen to join The solid yes vote was higher than what various objections. Most of them feel they and Brussels continues to pay lip-service had been predicted in the opinion polls. have nothing to gain by it. But the strongto that aim.

The endorsement means that Croatia, barest argument is based on sovereignty. The But it is likely to be a decade at least ring any last-minute hiccups, will become country only became independent in the before Serbia, Bosnia and the rest are adthe EU’s 28th member country in July last 20 years. Many feel that joining the mitted, if at all.

A no vote on Sunday would next year, symbolising its break with the supranational EU will be a retrograde step have been seen as a disaster, relegating Balkans and former Yugoslavia and anto something like the former Yugoslavia. ■ Croatia to a Balkan quagmire. choring it strongly in the European main-

C

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interview IsIDora ŽebelJan,

acadeMic and coMPoser

serbia Must sHOWcase taLeNt Isidora Žebeljan was the youngest candidate, at the age of only 39, when in 2006 she was admitted to the Serbian Academy of Science and Arts (SANU) as an associate member. Even today, she is the youngest member of the SANU. For quite some time, Isidora has been the most successful Serbian composer abroad, being commissioned by the biggest music companies and ensembles in Europe - Academy of St Martin in the Fields, Bregenz Festival, Venice Biennale, Göteborg Symphony Orchestra, Nederlands Kamerkoor and others 24 |

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■ By Radmila stankovIć

ecently, apropos the celebration of the 170th anniversary of the SANU, Isidora was chosen as the director of the music segment of the celebration. On the occasion, and with help from her husband and only one associate, she managed to put together an exclusive set of three CDs, the first of its kind, which contains an overview of the history of Serbian music through the works of composers and academics – from Davorin Jenko in 1864 to herself today. She says that the endeavour provides a clear picture of how Serbian music has grown over the years, adding that it is a rather precious record for both foreign countries and us

alike. Radio stations will finally have a chance to introduce their listeners to Serbian composers.

■ What was your relation with the

SANU before you became its associate member?

- The SANU was closely related to people I knew who were academics and composers. By that I mean Enriko Josif, Ljubica Marić and Duško Radić. I worshiped and appreciated those people since they were very important figures in my musical upbringing. I knew that they were terrific and honourable individuals, but also honest and exquisite artists. I also loved Dragutin Gostuški, who wasn’t an academic per se, but the director of the SANU’s Institute of Musicology and who also played an important role in my development. If you are asking me about my attitude toward the SANU, it wasn’t clear cut.

I was neither for nor against it, or particularly interested in finding out what had been happening there.

his book, which is due to be published in The Netherlands, he researched various events from Serbian history, including the famous SANU Memorandum, an unfinished document which was written

by SANU sometime between 1985 and 1986 as a strategic programme of Serbian intellectuals. Therefore, I found out that the story about the Memorandum is far from what had been presented to the public. It is not simple or superficially nationalistic. We could say that the way in which the story was told was conservative and negative; hence, a clear and proper solution for the problems

bers were, and are, predominantly the most ingenious and creative people that Serbia has to offer - Josif Pančić, Nikola Tesla, Jovan Cvijić, Mihajlo Pupin, Milutin Milanković, Stevan Mokranjac, Ivo Andrić, Mića Popović, Vlada Veličković, Ljubica Marić, Danilo Kiš and others, as well as foreign members like Tolstoy, Shostakovich and Arvo Perta.

■ I presume that Enriko Josif, a wonderful man and composer, was no less important to you because of the fact that, in the 1990s, he came up with the catchphrase “Serbs are heavenly people,” which was a favourite amongst the supporters of Slobodan Milošević?

- My political convictions, which I acquired through my family during the 80s and 90s, were certainly not similar to those of Enriko Josif. However, that has never affected the relationship I had with him or any other great artists or outstanding human beings who thought differently to me. There is a basic love that is founded upon what you have experienced, What is interesting about sAnU what you get from a spiritual ■ Now that you are an associexchange, what people show is that it is an institution that, in ate member, has your attitude terms of its organization, functions you and how they behave in their relationships with other towards the SANU changed? in accordance with “the old rules” human beings. Enriko Josif was - Through becoming a member of this institution, I have met which has turned out to be terrific an idealist, a Jew in love with Serbia and the Serb people, several extraordinary people who are top experts in their fields – back then could not emerge from it. For whose only ‘problem’ was that he was a physicist Đorđe Šijački and neurologist a long time, the story about the Memo- man of love in an era of cynicism. I have Vlada Kostić, became my dear friends. randum was a taboo and I am sure that always believed that different opinions What is interesting about SANU is that the majority of people don’t know ex- are legitimate, providing that they do not it is an institution that, in terms of its actly what was written in it. Certain aca- jeopardize other people. Staying true to organization, functions in accordance demics from the time of the Memoran- his personality, Enriko Josif withdrew with “the old rules” which has turned dum are still alive, and I must say that from public life when he saw that things out to be terrific. Most things that are they are not my favourite characters. I were not going the way he advocated. I conceived can be realized since they are don’t understand their simplified way remember him being quite contrite durdeveloped within the set timelines and of thinking, which prevents them from ing the last years of his life. I was sorry on deadline. SANU is a well-organized seeing the ‘forest for the trees’. However, to see him like that and I endeavour, as institution. It is interesting to men- that does not mean that such opinions much as I can, for his music to live on tion that, in the last few years, I have should not exist since diversity is, es- and always be remembered. discovered an abundance of informa- sentially, precious. Through conflicttion thanks to my husband’s interests ing opinions, a person builds, sharpens ■ You have managed to become suc(writer, oboist and professor at FILUM and refines their thinking. On the other cessful globally ‘only’ as Isidora Žein Kragujevac, Borislav Čičovački - au- hand, we should always bear in mind beljan, a composer from Belgrade. thor’s note). In order to get material for that, throughout history, SANU mem- Here, unfortunately, artistic success cordeditorial@cma.rs

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often depends on political affiliations. How did you manage to avoid that trap?

- The fact that my music has experienced some fantastic things abroad has opened the door for me here in Serbia.

The first people that recognized that, and who approached and helped me to

present my new music in Serbia were people from the Democratic Party.

Later, individuals from other political parties helped me, to a certain extent, with my music and I appreciate that.

Nonetheless, I have never tied myself to any political party nor would I like to do so. My integrity is of the utmost importance to me and it has no price.

Serbian political scraping is detrimental through and through since it prevents institutions from being formed and a system being put in place that could function independently away from daily politics, political officials, their knowledge or lack thereof or their good will. The abscence of a proper system and rules, which are above any individual, is what troubles people living here. It makes them feel unhappy, unprotected and frustrated. In short, they are bothered by non-existent justice. At this stage, it is important for me 26 |

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to realize that I have reached a certain position that enables me to do something for the common good of Serbia.

Of course, it is important to me that my musical pieces are performed here too, but that is not the priority since, thankfully, I have institutions, ensembles and individuals from Western Europe who

and willing to properly present its high culture. Economically speaking, we are not interesting to anyone, whilst strategically we are no longer an evident challenge. So, all that remains is culture, where really small and big miracles happen. Imagine if you will, that we had a strategy that would endorse the idea of a dozen or so of our most original artists and their work to be presented in several important centres in Europe simultaneously, under the one common name of “Serbian Culture”. For example, people like Milena Pavlović Barili, Ivo Andrić, Miloš Crnjanski, Danilo Kiš, Ljubica Marić, Dušan Radić, Aleksandar Obradović, Aleksandar Petrović, Dušan Makavejev, Petar Lubarda and Mića Popović. Just think what kind of shift in understanding and accepting of Serbia would take place. Alternatively, the state could use Milutin Milanković’s contemporaneity, apropos the 130th anniversary of his birth, to link the name of Serbia to the most important scientist in the last 100 years, particularly in the very important field of today – climatology. That is what we need.

By preserving and getting to know the works of our culture and science, we could find out about our spiritual physiognomy and who we really are, and by doing so we would I have never tied myself to any finally understand political party nor would I like to do our own identity and ourselves. We that. My integrity is of the utmost are constantly findimportance to me and it has no price ing ourselves in a are taking care of my music. I feel the situation that when a person who manurgency to take care of our composers ages a certain institution leaves, the who are no longer alive or who have whole system collapses and needs to be rebuilt. And in that commotion many been forgotten. good things are lost forever.

■ Why is that?

- Because of the non-existent system, ■ Is that our common trait, i.e. a trait of i.e a lack of institutions that would, in the people living in Serbia? Is it more this case, take care of our heritage! For pronounced here than in other more instance, Serbia is the only country in orderly systems?

Europe that doesn’t have a music cen- - Our trait is that we cannot comprehend tre. The scores of all Serbian compos- who we are and we have been perpetuers, who are not alive, are in complete ally trying to interpret our own identity. disarray. This is where we fall short. We still don’t know where we stand with Our politicians need to understand that Vuk Karadžić and Dositej Obradović Serbia will only be viewed as an equal since our collective consciousness canin the EU only when it becomes able not register the fact that they are some

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of the greatest people of our nation like Voltaire is for the French or Goethe is for the Germans. The fact that we don’t treat them as a sacrosanct authority is closely tied to the idea of the state and institutions. Our country needs to be cured from the feelings of guilt and pangs of conscience whenever we mention the adjective ‘Serbian’. Because we don’t know who we really are, we don’t have a clear picture of our own identity.

If people here are afraid to call a certain institution the Serbian Literary Association, instead of the Literary Association of Serbia or the Serbian Film Centre instead of the Film Centre of Serbia, then that speaks volumes about how far we really are from the basic psychological acceptance of the term sovereignty. I ask you, is there any other country or nation in Europe that has such a dramatic feeling of guilt and remorse about its own

- In most cases, my music arouses interest because it is unusual. What is great in Western Europe is the fact that almost all societies there have reached a certain level of humanity, which entails having no prejudice in dealing with people from other parts of the world. They are open and accepting of other human beings.

Unfortunately, this wonderful heritage of the western civilization has been going through changes in the last few years.

What you do is what counts. If a piece is

national feelings? We inherited this national frustration from the Communist era, during the Socialist Federal Republic of Yugoslavia, when Serbs were continuously and deliberately accused of being hegemonistic. This issue should be subjected to a deep psychoanalysis.

Basically, that is why we haven’t created the state of Serbia, since such a state does not exist in our heads. There are only tribal relations – we are the Serbs, they are the Croats or Slovenians, others are Hungarians…. The idea about the true state of Serbia, which protects its citizens, is still not alive in the mind of our people. Unfortunately, we still have to talk about this at the beginning of the 21st century.

original and has an impact, then it is accepted, if not, you’ll probably never get another chance. I have worked a lot in Austria and I only once felt any animosity because I was from Serbia.

don’t want to even start talking about Aleksandar Madžar, Stefan Milenković, Ksenija Janković and Nemanja Radulović.

They live abroad, they went to school there and it is of great importance for them to be presented in the best possible manner here too so that we can enjoy their talent and skills.

If we are talking about Belgrade, or Serbia for that matter, musicians here have the same problems as most people in society. Because of everything that I

We have phenomenal performers who sing at the Metropolitan, Covent Garden and Vienna State Opera or play at the Royal Albert Hall or Konzerthebau. I am referring to Željko Lučić, Zoran Todorović, Marijana Mijanović, violinist Gordan Nikolić and pianist Tamara Stefanović

■ Bearing in mind the great successes that you have accomplished in the world, have you ever felt that you were treated as less worthy because you are a Serb?

■ Many are quick to say that we don’t have great artists, performers and authors who could attract audience’s attention.

What is your view of the current music scene? I am of course referring to classical music.

- We have phenomenal performers who sing at the Metropolitan, Covent Garden and Vienna State Opera or play at the Royal Albert Hall or Konzerthebau.

What more can you ask for? I am referring to Željko Lučić, Zoran Todorović, Marijana Mijanović and violinist Gordan Nikolić. Then there is the pianist Tamara Stefanović who is virtually unknown here, yet is excelling in her career. I

have said earlier, people are generally very unhappy and dissatisfied. They feel frustrated and deprived.

If we are talking about contemporary music, there is a lot of anger at present as there are no channels for creative outlet – nobody is commissioning anything, orchestras do not play contemporary music and there are very few concerts of chamber music. I don’t have a recipe for a better life, but many obstacles could be more easily overcome if people joined forces and had a joint approach whilst fighting for the interests of their guild. However, musicians, and especially instrumentalists and soloists, are raised to be super individuals who have a very undeveloped sense of to-

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getherness, hence it is very difficult for them to get organized and accomplish something together.

■ Are there any essential differences between music audiences here and abroad?

gap seems to be the widest in music. It is also interesting to mention that, for the most part, my music has been developing and has become more open thanks to the acceptance I have received in other societies.

to me that the contemporary Russian composers still haven’t revived the ingenuity of their past and they still haven’t found an authentic expression that can shine through with the appropriate impact (not including Ustvolskaya and Tarnopolsky). We can discern that from the music that is available to us. Of course, that is changing too. Anyhow, it is important for an artist to have a strong individual expression that doesn’t need to have anything to do with his or her nationality.

- I am usually in touch with the people ■ What are your experiences from from Western Europe and through that working in Russia?

I realized that the societies there have a sophisticated outlook on many things – from social problems to culture. These societies formed their institutions and organiza■ Is there a distinct European mutions a long time ago. In societies such as this, culture is an essential sic scene compared to an Amerigood. A lot has been invested in culcan one? ture throughout history and today - There isn’t just one music scene people are very careful in spending and that is good. There are compostheir money on said culture. People ers who are interesting and have who have a fantastic knowledge an original expression. There is of classical music have often fascithis wave of very interesting Asian nated me, and they were engineers, composers, especially from Japan, doctors, lawyers. Even some music China and Korea, but they are still theorists here don’t possess such an very young and we need more expansive knowledge of music. It is time to get a full picture of their unbelievable how such audiences work. Europe is still the number comprehend my music and in how one scene for composers and it is much awareness, love and important that their work serbia is the only country in europe taste they have of music. is tested here. America is a that doesn’t have a music centre. the completely different story. It In such countries, classical music is a very important scores of all serbian composers, who is a huge market, dominated art genre and a lot of money two opposing worlds are not alive, are in complete disarray by is invested in it. This music – the world of film music, is a universal communication tool and - Today’s Russia is divided. Above all, which is light and somewhat tacky, and the more you listen to it, the more so- Russians have an enormous and genius another, completely different world phisticated you become. There is a big musical tradition. Following the fall of which is based on the academic Art gap between what people want, love the Berlin Wall, many music professors Nouveau from the 1960s. I think that and cherish and what is offered and ap- and instrumentalists left the Soviet Un- this latter world has less money and has preciated in Serbia. Maybe the situation ion, but now, Russians are the top music difficulty surviving on its own, since it with the other arts is similar, but this professors in Europe. However, it seems simply has no audience. Of course, minimalism is the American music trademark and it is still doing International career well. However, there are sevIsidora Žebeljan graduated and got her master’s degree from the Faculty eral interesting developments of Musical Arts in Belgrade. In London, during 2002, she was also the laureate in Europe too. of the Genesis Opera Prizes and was commissioned to write the opera Zora D, which had its premiere in Amsterdam in 2003. This was the first ever Serbian opera that had a premiere abroad as an opening act, in the 50th season, of the Vienna Chamber Opera. So far, Isidora has written over thirty musical pieces, many of them commissioned from, and also performed in Great Britain, Austria, Germany, The Netherlands, Ireland, France, Sweden, the Czech Republic, Italy, Spain, Estonia, Norway, Finland, the U.S., Croatia, Slovenia, Macedonia, Montenegro and, naturally, Serbia.

She has also written music for thirty or so theatre plays, is the recipient of the three Sterija Awards for music, and is an associate professor at the Faculty of Musical Art with a class of 10 students.

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■ Have you been commissioned to do more work abroad?

- Yes, I am ‘booked’ all the way up to 2015, but I am hesitant to speak in advance about things that are still not yet finished. You know, it is the Slavic superstition. ■

focus

Private Medical

Treatment

Serbian patients want greater choice in their treatment of paid health insurance, hence they are increasingly seeking to be treated equally as patients in other countries of the region and Europe. Patients want to be treated at private medical practices with no additional payment. On the other hand, the private health sector is increasingly developing in vocational and technical terms, which is very important for the quality of healthcare treatments in Serbia. Regulation of relations between the private and public health sector is one of the entry requirements for the EU, so regarding this issue we asked the following question.

-Do you support the proposal that patients with certified health documents should have medical treatment within the private healthcare sector (in which case Serbia would no longer be the only country in the region in which the private health institutions are outside of the health system and health insurance). What would be your proposal to overcome the existing gap in the treatment of private and public medical institutions?

Healthcare System Needs Reforming Dr. Zoran Stanković, Serbian Health Minister

O

ne of the obligations that Serbia has to fulfil in order to join the EU is to counterbalance the state and private health sector. In order to do that, we need to reform our health system, which, amongst other things, entails changing the Health Insurance Law and Health Protection Law. Another important fact to mention is that the laws that we enact should be applicable here and acceptable

Patients with health insurance can often do medical checkups and analyses or get a diagnosis at state-run health facilities, while they can receive medical treatments at the private practice which has organized the entire procedure to the EU, bearing in mind the fact that we often adopt laws that are very similar to those in highly developed European countries that we simply cannot follow through with as we don’t have proper financial or technical conditions.

We also need to make a decision on whether our doctors are going to work in both the state and private health sector or not.

My opinion is that people who have private practices should not be employed in the state sector. This will help us to avoid situations that usually result in a substantial number of complaints, i.e. we should allow patients to come to a state-run health facility, do all the checkups, get a diagnosis and then send them to 30 |

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a private practice for treatment with the doctor who organized everything. In this way, we would also create conditions conducive to hiring more doctors and other medical staff.

Regulation is Necessary Dr. Aleksandar Vuksanović, Director of the Republic Institute for Health Insurance

T

he Republic Institute for Health Insurance is currently developing the pay-perservice system, i.e. a system that is based on a medical practitioner’s performance. We expect this system to bring more order into the health protection field and a new way of providing medical services that are market orientated (DRG, capitation). This is an ongoing process that is being strongly developed. In order for this process to be successful, it requires the adoption of new standards and norms, a nomenclature of services and a new service price list. On top of that, we need to consider the number of citizens and their needs. The Health Ministry is in charge of devising new standards, service classification and norms. New solutions and regulation will come together with the new price list for services,

Since 1995, the Republic Institute for Health Insurance (RZZO) has concluded contracts on medical treatments with private practices only upon suggestion by the Milan Jovanović Batut Health Protection Institute and with approval from the Health Ministry

which will enable the Republic Institute to conclude contracts with health facilities that fulfil certain criteria and accept the Institute’s price list.

In regard to the existing procedure of the RZZO and the medical facilities that are not included in the network plan concluded contracts, this procedure is regulated in a way that a contract can be concluded only for a certain number and type of medical service that cannot be rendered by the existing medical capacities from the Network Plan. The Milan Jovanović Batut Health Protection Institute gives its opinion on whether concluding such a contract with a medical facility that is not a part of the network plan (the state-run medical facility) is justifiable. The Health Ministry then gives its approval to enter into such contracts.

A contract is deemed concluded once the price list of individual medical services is applied in practice or when a specialized service programme is executed.

In the period from 1995 to 2010, RZZO had a contract with the Institute for Experimental Phonetics and Speech Pathology.

In 1995, the RZZO concluded a contract with the Institute for Hyperbaric Medicine, which is valid to date, and in 2005, the RZZO concluded a contract with the Medinova medical facility due to the insufficient dialysis capacities available at the medical facilities that are included in the Network Plan. From 2008 to June 2011, the RZZO had a contract with 6 private IVF clinics, and, in 2010, it entered into a contract with the Belgrade KBC medical facility stipulating cardio-surgical interventions.

The Republic Institute for Health Insurance is an executive body and supports efforts geared towards providing patients with better, more efficient and more comfortable medical treatments In addition, since June 2005, there has been the possibility of concluding contracts with private practices pertaining to the issuing of prescriptions for general, dental, paediatric and gynaecological drugs that are included in the official Drug List. So far, over 120 private medical practitioners have signed contracts with the RZZO that enables them to issue prescriptions for drugs that are included in the official Drug List.

Further, since 2005, private pharmacies have had the opportunity to conclude contracts with the RZZO providing that there isn’t a single pharmacy from the apothecary facilities network in a 20 km radius. So far, none of the privately owned pharmacies have expressed an interest in concluding such contracts.

The Republic Institute for Health Insurance is an executive body and supports efforts geared towards providing patients with better, more efficient and more comfortable medical treatments. In that respect, we support the idea for patients with medical insurance being able to receive treatments in private practices. Our experience so far with this kind of medical treatment is good and we are of the opinion that the range of such services should be expanded, but the Health Ministry has the final say in this matter.

Patient has the Right to be Equal Milenka - Mila Jezdimirović, D.Sc. General Director of Dunav Osiguranje

W

e believe that it would be very suitable for all beneficiaries of mandatory health insurance to receive the same treatment in both the public and private sector, however the intent of the insurer is to develop the part of the insurance business which is made possible under our legislation and that is voluntary health insurance.

In Serbia, compulsory health insurance cannot be affected by insurance companies, but only by the Republic Fund of Health Insurance.

The scope of services covered by mandatory health insurance, which is provided and effected in the usual manner (visit to the doctor and presentation of a certified health care document), is actually decreasing By developing new products of voluntary health insurance and by creating a network of health institutions of top quality - encompassing general health institutions, hospitals, treatments and rehabilitation centres in both the public and private sector - Dunav insurance company, as the largest insurance company, strives to accommodate the needs of its clients to the fullest through the development of this type of service.

The scope of services covered by mandatory health insurance, which is provided and effected in the usual manner (visit to the doctor and presentation of a certified health care document), is actually decreasing. We are striving to supplement these services by voluntary health insurance and prove that our company is very capable of covering that segment.

Also, in this way, we increase people`s awareness about the

It would be very suitable for all beneficiaries of mandatory health insurance to the receive same treatment in both the public and private sector need to start thinking by themselves instead of completely relying on government-owned health funds. We empower people to set aside, according to their means, funds for their insurance, and by the service we provide to our clients we try to justify the confidence they place in our company in entrusting us with their voluntary health care coverage. cordeditorial@cma.rs

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focus

Patients Should Have State Help Milomir Kandić, Director of NOVA VITA Hospital

B

earing in mind that Belgradebased Nova Vita hospital, which specializes in internal medicine, was opened almost a decade ago and has been successfully operating during that time, we are quite aware of all the advantages and deficiencies that excluding a private health facility from the mandatory health insurance system brings.

Each year, our hospital provides medical treatments to a substantial number of patients who come from all over Europe and the rest of the world. What sets our facility apart is the fact that it has established cooperation with many national and

The state needs to intervene and provide benefits for terminally ill patients in the sense of covering the costs of diagnostic and therapeutic procedures, as well as including private medical facilities foreign science and research institutions (like the Kragujevac Faculty of Medicine, the Vinča Institute of Nuclear Sciences and Pierre and Marie Curie Institute from Paris, to name just a few). Also, our hospital is the first such facility in the region to offer new and quite successful therapy in treating people suffering from malignant diseases. Unfortunately, only a handful of patients in our country can afford such treatment.

As a privately run health facility, we have been dealing with a lot of pressure coming from institutions that are in charge of monitoring the work done by private medical facilities and we receive no help whatsoever from the state.

We certainly support the proposal to enable patients with valid health care cards to receive treatment in private clinics. What also sets our facility apart is that we, as a hospital, which specializes in internal medicine, offer all relevant diagnostic and therapeutic services, and also take patients who need palliative care - like patients in the last stages of terminal malignant diseases. We are the only medical facility in the region that offers such a service and, unfortunately, the need for palliative care is constantly growing with the increase in the number of new cancer patients. Providing this service requires a highly trained team of medical specialists, medical consultancy services and often very comprehensive symptomatic and supportive therapy, hence the price of such services is too high for the average citizen. The need to have an institution that offers this kind of care is great indeed and we are very aware of that as we see the number of patients, who need such medical services provided by our facility, grow32 |

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ing day-by-day. However, as I said, the number of people who can afford such medical care remains very low. This is where the state needs to intervene and provide benefits for terminally ill patients in the sense of covering the costs of diagnostic and therapeutic procedures, as well as including private medical facilities that offer such services in the mandatory health insurance system.

Bylaw Not Being Applied Dr Atila Čenegri, Provincial Health, Social Policy and Demography Secretary, Novi Sad

I

absolutely support the proposal for patients, who are insured with the Republic Health Insurance Fund and have verified health care cards, to receive medical treatments both in state run medical facilities and private practices with which the Republic Fund has concluded contracts on providing medical care on all three levels – primary, secondary and tertiary.

In a legal and normative sense, a real step forward was made with the changes to the Bylaw on Procedures in Exercising the Right to Mandatory Health Insurance which was enacted by the Managing Board of the Republic Health Insurance Fund on 7th September 2010 and which came into force on 10th September 2010. The bylaw covers work carried out by private practice doctors and has detailed and elaborate stipulations concerning patients with valid health insurance receiving medical treatments at private practices, with a wide range of possibilities geared toward attaining the right to medical insurance.

In a legal and normative sense, a real step forward was made with the changes to the Bylaw on Procedures in Exercising the Right to Mandatory Health Insurance.

Unfortunately, this novelty in the Serbian health system has not yet come to life Unfortunately, judging by the information I have received from medical facilities - private practices and the Republic Fund - this novelty in the Serbian health system has not yet come to life. If you ask me for my suggestions on how to overcome the existing ‘gulf’ between getting health care in private practices and state-run facilities, firstly, what needs to be done is to create conditions for the stipulations of the said bylaw to be applied in practice. This is primarily the obligation of the Republic Health Insurance Fund. After that, we shall see what kind of problems might arise in the implementation of the bylaw and accordingly find ways to overcome them in an effort to counterbalance the private and state health care sector.

Tax Laws Must Be Revised Aleksandra Perić, Director of the Technical Personal Insurance Directorate

A

lthough the Health Insurance Law stipulates the right to choose your own doctor at a local health clinic, the same law denies the insured person the right to choose a private practice doctor thus discriminating against patients wishing to receive medical treatment at private health facilities.

In the last few years, private medical facilities in Serbia – from health clinics to hospitals – have rapidly developed. Most facilities are well organized and provide relevant services that can fully respond to the needs of patients who have chosen their own doctor. The existing system forces citizens, who have been receiving treatments at private facilities, to use state run hospitals only, for instance, to get a sick leave note, prescription or report on their health. Apart from being time consuming, this also costs money. If patients were allowed to use the services of a private medical professional, at their discretion, then state health capacities would be made more available to people of lesser financial standing that have no other choice but to get medical treatment at state hospitals.

The voluntary health insurances task is to organize a provision of services and cost structure in such a way that insurance policy holders can choose between several private or state run medical facilities, as well as in ensuring access to healthcare and monitoring its quality, while taking care that the contracted rights of each individual patient is met.

The state healthcare system is vital for any society and its role and importance should not be underestimated including the obligation to pay the salary contributions that go towards mandatory health insurance. Still, citizens should be allowed to choose an option based on their needs and financial circumstances. That means counterbalancing the private and state healthcare sector in both health services and health insurance. We need to revise the tax procedures applied in the case of voluntary health insurance, including the tax on insurance premiums that an employer pays for their employee, which is viewed as an income and thus is subjected to taxes and various contributions. In order for Serbia’s healthcare system to develop, we need to allow the voluntary health insurance system to grow, since, in that way, private practices will ‘enter’ the healthcare system, voluntarily that is. Changing the tax laws and exempting people from paying taxes on health insurance premiums or setting up a limit on the non-taxable premium amount, just like in the case of pension funds, would substantially contribute to the development of the healthcare system.

The voluntary health insurances task is to organize a provision of services and cost structure in such a way that insurance policy holders can choose between several private or state run medical facilities The data collated by the State Statistical Office shows that citizens spend over one billion euros a year on health services. This means that, apart from the money for mandatory health insurance, they are also spending money on private medical services.

A good way to rectify this situation, significantly improve the level of healthcare and improve citizens’ health is in having voluntary health insurance. This kind of insurance is offered by private insurance companies and its gives greater coverage of health related expenses and a wider range, volume and standard of medical services – like semi-private hospital rooms, home care, epidural anaesthesia and similar - compared to those covered by mandatory health insurance.

In addition, voluntary health insurance covers services that are not covered by mandatory health insurance, but at a much higher standard. I am primarily referring to specialized medical checkups in private health facilities without the need to bring a doctor’s referral, treatments at hospitals as chosen by the patient and compensation in case patients need to contribute to the costs of services covered by the mandatory health insurance (so-called participation costs). cordeditorial@cma.rs

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quotes

01. Coalition

04. Going back

Standards

“If a coalition led by the Serb Progressives (SNS) forms the next government, there must not be forgiveness like after the 5th October.” Velimir Ilić, leader of New Serbia (NS)

“I would go back to Serbia tonight. Perhaps in the morning, if I didn’t have enough time to pack my stuff. But that does not depend on me.”

Mira Marković, widow of the former Serbian President Slobodan Milosević

“In an unpredictable world, we have to have standards, and stand in front of our citizens and explain what we are doing and what we are not doing. We have standards in all areas of industry, steel, agriculture, the political system, EU membership, negotiations regarding Kosovo and Metohija…” Boris Tadić, President of Serbia

02. Powerless “I am not interested in Dacic’s stupidity, but I am worried about the powerlessness of the DS to lead the country in a serious manner. Nobody normal supports violence or agrees with a government which is more brutal towards a library director than a criminal.” Čedomir Jovanović, LDP Leader

03. Rules “Germany is under a heavy burden trying to improve the EU and drag it forward. We are forced to pay bills run up by others because those others have not played by the rules. Some countries that do not consider those rules important are ready to support Serbia’s candidacy for the EU regardless of the fact that Serbia has not fulfilled all of the conditions set,” H.E. Wolfram Maas, German Ambassador to Serbia (Blic)

“The report of European Council shows that Serbia has made a big step forward in the adoption of many European values such as gender, minority status, the fight against discrimination, the fight against torture…”

Dragoljub Micunović, the head of the Serbian delegation at the Parliamentary Assembly

“Suppression of the opposition, the establishment of a system based on one sole party rule and establishing a system of party monism - which lasted nearly half a century, has had farreaching and devastating consequences for the subsequent development of the country, civil and political freedom, individual fate and that of generations.”

Vojislav Koštunica, leader of the Democratc Party of Serbia (DSS)

06. Principle

08. Criminals

“The combination of pressure, blackmail and dirty money has caused a number of African countries, which have for a long time held the position of not recognizing the attempted secession of a territory of a sovereign state, due to the principle reasons – are now changing their position.” Vuk Jeremić, Serbian Foreign affairs minister (Tanjug)

“That statement of Andrej Nikolaidis is not an attack on the Serbian people, but a revolt against criminals who have brought shame to the Serbian people that we unfortunately have not willing admitted to having. Serbia will be an unhappy country until the recalcitrant artists are called criminals, and docile criminals are made patriots.” – Nenad Prokić, Member of the LDP presidency

05. Big step

Declarations “Vuk Drašković does not recognize us. So we have decided that instead of a declaration Reversal, which led to inter-party conflict, attrition and disorientation, the party are offering declaration Return.

Specifically, this means a return to our party’s original national program, which includes a strong economy and a very proEuropean orientation, and the protection of state and national interests by democratic means accepted in the modern world.”

Ljubomir Sokolović, president of the SPO party for the local board of SPO Zemun municipality 34 |

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07. Monism

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09. Puppets Through its non-diplomatic methods, Russia has fully revealed its intentions, which are that at any costs they want to cause instability in Serbia, to use extremist groups and the Kosovo problem, to form the basis of

a ‘patriotic’ Kostunica Nikolić Government and other Russian satellite governments, where the puppet government would then hastily sell EPS and Telekom to Russian companies, then the Serbian trinity of NIS, EPS and Telekom to become puppets for the Russian oligarchy.” Nenad Čanak, LSV leader

10. Croat fans “Attacks on Croat fans in Serbia represent unacceptable incidents that damage Serbia’s reputation, and we should not behave like they do, when our people go there (to Croatia). We are getting ready for the Serbia-Croatia game. Of course we are. I no longer know who I support.” Ivica Dačić, Serbian Interior Minister, a day after incidents in Novi Sad, one of the host towns of the European Handball Championship.

11. Peacekeepers “We discussed the possibility of joint involvement in the mission, where the Serbian army currently has six officers. We also want to take part in EU peacekeeping missions, and in Operation Atalanta, Somalia, where Italy has its ships. We have now laid new foundations for cooperation, primarily in education, both of our cadets and officers, and of special forces,” Dragan Šutanovac, Serbia’s Defence Minister, in Rome discuss joint participation in EU and UN peacekeeping missions.

jan 2012 business leader’s meeting point

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Page 44

Neoclis Neocleus,

Biljana Čvertkov,

New Year – New Challenges

JRB’s 150th Anniversary

Chairman of Executive Board of Piraeus Bank

Acting General Director of JRB

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Dejan Jovićević,

Angela Merkel, German Chancellor

Profit Generated Abroad

"We Need a Big Rethink"

Director of Energoprojekt Visokogradnja

Davos 2012

Outstanding issues

Business Dialogue 01

“Delay of the first revision of Serbia’s precautionary arrangement with the IMF does not imply that the arrangement will be interrupted. The IMF mission would visit Belgrade in about two weeks and conduct talks with the Serbian government regarding all outstanding issues.” — Jurij Bajec, Serbian prime minister’s economic advisor

02

Piraeus Bank

Increased Share Capital

The New ML 63 AMG, V8 Bi-turbo Engine

Following the resolution at its extraordinary General Shareholders’ Meeting at the end of 2011, according to L. 3723/2008, “For the liquidity enhancement of the Greek economy,” Piraeus Bank has completed the procedure for an increase of the Bank’s share capital by €380,000,000. New preference shares in the amount of 1,266,666,666 have been undertaken by the Greek State. This share capital increase reinforces Piraeus Group’s capital adequacy ratios by 1 percentage point, leading to a 9.8% total capital adequacy ratio (based on September 2011 data, excluding discontinued operations).

03

Mercedes-Benz

In this issue CorD presents with you the new Mercedes-Benz ML 63 AMG which stands for efficiency and performance, exclusivity and a superlative driving experience Running on 11.8 litres of fuel per 100 kilometres, the high-performance SUV undercuts its predecessor by 28 percent. The basis for low fuel consumption and top-class performance is provided by the AMG 5.5-litre V8 bi-turbo engine with a maximum power output of 386 kW (525 hp) and peak torque of 700 newton metres, representing an increase of 11 kW (15 hp) and 70 Newton metres. The optionally available AMG Performance package boosts the V8 engine’s power output to 410 kW (557 hp) and its maximum torque to 760 Newton metres. AMG Ride Control sports suspension with newly developed Active Curve System for active roll stabilisation, AMG-specific design and a broad scope of standard equipment and appointments make for a highly attractive overall package.

The new ML 63 AMG comes with an exciting technology package: the AMG 5.5-litre V8 bi-tur-

Energoprojekt

04

New Deal in Algeria

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EBRD

Serbia's Growth Remains Slow

Energoprojekt construction company has signed a new deal in Algeria, worth €1.7 million, on consulting services in the building of dams

Energoprojekt Hidroinzenjering and the National Agency for Dams and Transfers of Algeria signed two new contracts at the start of the year, on the creation of preliminary designs and tender documents for the construction of two dams - Bouzina in the Batna region and Tarzout in the Chlef region, “The Bouzina dam will be a BCR type dam, 63 metres tall, while the Tarzout is an embankment dam with a clay core, 60 metres tall,” announced Energoprojekt in a statement. The deadline for the realization of the two projects is 15 months.

Source Ansamed

bo engine features spray-guided direct petrol injection with piezo injectors, ECO start/stop system, an all-aluminium crankcase, four valves per cylinder with camshaft adjustment, air-water intercooling and alternator management.

Both variants of the ML 63 AMG enable sports-car performance: acceleration from zero to 100 km/h takes 4.8 seconds and 4.7 seconds respectively, while top speed stands at 250 km/h (electronically limited). With or without the AMG Performance package, the NEDC fuel consumption figure of 11.8 litres per 100 kilometres (276 g CO2/km) remains the same.

The European Bank for Reconstruction and Development (EBRD) has cut the anticipated 2012 economic growth rate for Serbia by almost a half, thus reducing it to 1.1 percent, as posted

by EBRD on its website at the end of January For purposes of comparison, the anticipated other countries as well, EBRD stated. growth rate totalled 2.1 percent in October 2011; Aside from this, EBRD lowered the 2012 it is now one per cent lower. economic growth forecast for other former In the release, EBRD noted that the Serbian Yugoslav republics, thus reducing the anticipateconomy has stabilised but that its growth reed growth rate for Croatia from 1.9 percent to mains slow. According to estimates, Serbia’s one percent and from 2.4 percent to 1.8 perGDP in 2011 increased by cent for Macedonia. The rate EBRD assessed that the for Montenegro was lowered around two percent, but this year’s growth would be lowelection consumption from 2.6 percent to 1.9 perer, while the inflation rate cent, while the growth rate could encourage dropped to seven percent by for Bosnia-Herzegovina was the end of 2011. economic growth in the lowered from 2.3 percent to EBRD assessed that the 0.5 percent. short-run, but the major election consumption could enIn the case of Slovenia, courage economic growth in the risks for the economy as the only former Yugoslav short-run, but the major risks for republic that holds EU memare still present the economy are still present bership, EBRD predicts a and mostly come from exposure to the debt crisis negative economic growth of minus 1.1 perin the Eurozone. The continuation of support procent, in contrast to the October assessments vided by the International Monetary Fund ensures according to which growth was supposed to toSource Tanjug strong protection for Serbia, as is the case with tal plus 0.5 percent.

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Positive impact

05

U.S. Steel

“If you can save 0.5% by managing expenses and taxes, that’s going to have a huge positive impact.”

— Harold Evensky, the president of Evensky & Katz

06

Serbian Chamber of Commerce

Export to Russia rose 57%

Serbian Government Wants US Steel

Serbia's export to Russia grew 57% last year and reached $754.2 million (€580.7m) in 11 months, but the deficit remained high close to $1.5 billion (€770m) Dejan Delić, PKS expert

Serbia’s Government will try to avert the closure of its single biggest exporter, U.S. Steel Serbia, despite poor financial results The government will form a special team that will offer an “action plan” to help the Pittsburgh-based giant maintain production and keep its work force of over 5,000 people in its factory in Smederevo, some 60 kilometres southeast of Belgrade, deputy Prime Minister Verica Kalanović said.

U.S. Steel Serbia, which accounts for about 10 percent of the country’s exports with €27 million in 2010, is mulling turning off the second of the two blast furnaces in Smederevo because of mounting losses amid the global economic crisis.

A decision on what to do with the plant, which was purchased from the state for €25 million in 2003, is likely to be made in Pittsburgh on January 31st.

“Certainly, the government cannot silently watch the shutting down of such a big system that is so important for thousands of its workers, the town and the state,” Kalanović said.

She indicated that Serbia, which itself is going through a deep financial crisis, would help by covering some of the plant’s losses with funds from its budget.

Some Belgrade media reports even suggested that the state was willing to buy back the plant from the Americans.

The Smederevo plant, which is operating far below its annual capacity of 2.4 million tons, recorded losses of €56 million for the first nine months of last year.

U.S. Steel’s management cited the global economic crisis, the anaemic economy in south-eastern Europe, high raw materials costs and pressure from imports as the causes of the problem.

To reduce costs, the Serbian plant’s working week has already been cut to four days amidst a drop in global demand for its low grade steel.

Source Washington Post

08

The Serbian Chamber of Commerce (PKS) also said that trade between Serbia and the Russian Federation totalled just over $3 billion (€2.31b), which was 25% more than the first eleven months of 2010.

PKS expert Dejan Delić told Tanjug that imports from Russia rose by around 17% and had a nominal value of $2.25 billion (€1.73b).

Russia is Serbia’s sixth biggest export partner with a 6.9% share in Serbia’s total exports, and its top import partner with a share of 12.6%.

The export import coverage ratio is around 33%, Delić said.

Serbia’s exports to the Russian market are dominated by floor coverings and wallpaper, apples, cranes, lead-acid batteries, copper pipes, tires and medicine.

Energy in the form of crude oil and natural gas makes up 80% of Serbia’s imports from Russia, followed by aluminium, propane, oils and cigarettes.

Delić stressed that 99% of the goods are traded custom free.

The PKS expert reminded that a protocol signed in July 2011 further liberalized the Free Trade Agreement made between Serbia and Russia in the year 2000.

Russia is a member of G-20, a group of the world’s most powerful economies, together with Brazil, India, China and South Africa. It is one of BRICS biggest economies with a high growth rate. www.b92.rs

07

Ditre Italia

Opening New Furniture Factory Ditre Italia plans to invest €13.45 million into the construction of a furniture factory in Vranje Serbia

simpo

Enviro Collection – Special Edition A special edition of designer sofas, armchairs and poufs are available in February at the exclusive Enviro showrooms in Belgrade and Novi Sad. Current designer trends are shaped within sofas that offer exquisite comfort, premium quality materials and skilled craftsmanship that are a guarantee of thoughtful choice.

Enviro respects the rationality of customers, so a perfect ratio of price and quality characterise the new collection. Luxurious sofas for opulent interiors, as well as compact sofas for small spaces are available. Bearing in mind the requests of discerning clients when it comes to furnishing, Enviro offers contract furnishing or ready to move in facilities.

In February a selection of furniture is available with special promotional discounts, ranging from 10 to 40%. www.envirointerior.com Showroom Belgrade, Bulevar kralja Aleksandra 17, Tel:011 3241275 Novi Sad, Narodnog fronta 21/c7, Tel: 021 2314758

Verica Kalanovic, Deputy Prime Minister, Miroljub Stojcic, Vranje Mayor and Michele de Marchi, Ditre Italia General Manager

A Memorandum of Cooperation was signed by the Deputy Prime Minister for Economy and Regional Development Verica Kalanovic, Vranje Mayor Miroljub Stojcic and Ditre Italia General Manager Michele de Marchi. Ditre Italia intends to buy part of Yumco’s property and open a leather upholstered furniture factory in Vranje, which will employ 411 workers. De Marchi explained that his company had not chosen Vranje accidentally, recalling that this would be the third and the largest investment of Ditre Italia in Serbia. The company already operates in Serbia under the name of Top Sofa Srb, and it will now receive incentives of €5,000 for each newly created job from the Serbia Investment Promotion Program (SIPP). Ditre Italia is a renowned Italian producer of leather upholstered furniture, operating production facilities in Italy, Romania and Serbia with a total of about 600 workers.

Its products are sold all over Europe through famous retail chains such as But, Konforama and Lutz.

Source: SIEPA cordeditorial@cma.rs

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Arrangement

Business Dialogue Interview

“The central bank calls for additional effort, with the aim of reaching an agreement and continuing of the arrangement with the IMF, The key danger is for Serbia to be defined as a country that has not completely fulfilled the agreement .” — Dejan Šoškić, National Bank of Serbia Governor

Neoclis Neocleus, Chairman of Executive Board of Piraeus Bank

ing levels, and thereby preserve stability in the banking sector, it is necessary to reduce the high level of non-performing loans, which is the shared obligation of banks and enterprises.

In addition, banks will have to quickly and effectively respond to changes in the business environment and satisfy customer needs through loan restructuring, innovative products and favourable credit lines. For Piraeus Bank, our main objectives are the improvement of internal organization and the further expansion of our business.

New Year – New Challenges The previous year was challenging and not only in the banking sector. It has brought new challenges that we have had to face in order to achieve stability in our business operations

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oday, there is the prospect of the recession worsening in the region and EU countries. This indicates that 2012 will be even more challenging than 2011 for the economy and banks,” said CEO of Piraeus Bank, Neoclis Neocleus at the beginning of our interview.

■ Most Serbian and Greek banks have begun the new year with the same, old problems, with generally less money to be loaned to the economy, difficulties in getting money from previously given loans and the much lower credit rating of citizens. In such a challenging environment, what are your global expectations?

- It is expected that, due to challenging market conditions, banks will continue to be faced with the non-performing loan problem, focus will be on maintaining credit activity levels whilst at the same time not compromising the quality of operations. In order to maintain lend40 |

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■ So far, Piraeus Bank has invested nearly 500 million euros in the Serbian market. How are these investments performing, considering the current economic and business conditions?

- Due to our strategy, in the previous few years we have managed to achieve satisfactory growth. Strong capital and high liquidity in 2011 enabled us to be a reliable partner of the economy and citizens.

Piraeus Bank is still in the process of investing since it hasn’t reached the expected levels of activity. Times are tough, but we remain optimistic and have a positive approach. We are now more cautious in deciding when and where we invest, but that does not mean that we are going to stop providing loans.

■ Would you say that the business climate in Greece is calming after the EU’s assistance, or is that just a false impression due to the New Year holidays? Also, what future trends do you expect to see in 2012 for the Greek banking sector?

- In the second half of 2011, there was a significant increase in uncertainty regarding the international economic and financial environment. Sovereign debt crisis has spread to the core economies of the Euro Zone endangering global economic growth.

Hopefully, the recent European aid package will enable Greece to enter into a sustained period of economy calming, enabling the restructure of the economy and “freeing” economic forces that will bring changes in the future. Currently, Greece’s economy is facing a difficult period of adjustment, deficit reducing and the changing role and functioning of the public sector. In this context, it is to be expected that banks are financially supported with liquidity and capital where necessary.

Banks will have to quickly and effectively respond to changes in the business environment and satisfy customer needs through loan restructuring, innovative products and favourable credit lines

Regarding Piraeus Bank Group, we have reemphasized our policies to safeguard our balance sheet through the implementation of stricter evaluation criteria in the loan portfolio and a significant increase in provisions. Recently, Piraeus Bank Athens increased the Bank’s share capital with €380,000,000 due to 1,266,666,666 new

Good relations “In Europe it is particularly important that we build good relations to everyone who holds political responsibility because Europe can only be built together.” — Angela Merkel, German Chancellor preference shares undertaken by the Greek State. This share capital increase reinforces Piraeus Group’s capital adequacy ratio by 1 percentage point, leading to a 9.8% total capital adequacy ratio.

deposits. We are also planning to introduce improved products and services that will better serve the needs of our clients. Quality of service and customer orientation is paramount to us in 2012.

Innovation is also a very high priority for us. We are continuously searching for better ways of doing business - aiming to offer faster and better services with simpler procedures.

Two high priorities that have been identified for 2012 are in having more loan and deposit products in Dinars as opposed to foreign currencies and to promote further lending in the SME sector.

■ To what extent is the economic crisis in Greece dictating the terms of your business in Serbia, having in mind the significant global burden of the Greek banking sector?

- The events and crises in Greece have little direct effect on the financial conditions and business operations of Piraeus Bank in Serbia.

Piraeus Bank Beograd operates as an independent legal entity in Serbia and is highly liquid and solvent. Money ■ Serbian law defines all foreign banks operthat the bank has invested as equity capital canating in Serbia as domestic banks, thus legislanot be withdrawn and remains in Serbia as a pertion is very strict, especially when it comes to manent guarantee of solvency to local depositors, capital adequacy and provisions when approvlenders and other creditors. It is also important to ing loans. Does this bring about additional stress that there is no possibility that our mother caution when it comes to granting new credit? bank will ask for capital withdrawal.

What monetary measures are you expecting Greek banks have a market share of 16 perthe National Bank of Serbia to take? cent in Serbia as a result of rapid growth before Regarding our cooperation and supervision the crisis. At present, due to the crisis and probby NBS, we believe that Piraeus Bank is treated in lems faced by the banking sector in Greece, we a fair and correct manner, but that does not mean are adhering to a more conservative plan in Serthat there is no room for improvement. bia that does not involve rapid growth. However, The NBS’s regulatory framework and rules on this is also common with other non-Greek banks. capital adequacy are quite conservative, which in An improvement in our business operations and turn is making commercial banks more conservathe everyday management of the bank, including tive, however it helps at times of crisis. cost optimization, is now our priority. It is imporWe do not expect any imminent additional tant to stress that we still aim to monetary measures by NBS or Two high priorities that have been identified for 2012 changes to the banking regulatoachieve growth, albeit cautiously. are in having more loan and deposit products in Dinars ry framework in the near future.

■ As the director of a Greek as opposed to foreign currencies and to promote bank, how would you assess ■ The large number of nonfurther lending in the SME sector the EU’s support of Greece’s performing loans in Serbia economy, particularly concerning the banking sector that achas been growing steadily and exceeds 20 percent. Is it a problem cording to the latest forecasts can easily fall below expected for your Bank and, if so, how do you plan on tackling the issue? results? What are the consequences if that happens?

- Piraeus Bank’s total loan portfolio is about €600 million, out of - Following EU Summit decisions for “A voluntary bond exchange which around 10 to 11 percent is non-performing loans. Problemwith a nominal discount of 50% on notional Greek debt held by atic loans date back to the “distant past”, in the period from 2006 to private investors,” there will be a need to recapitalize the Greek and 2008, but due to slow legal procedures, they are still in Piraeus Bank’s European banks whose regulatory capital will be negatively affected, books. As for the loans in arrears, their number is slightly higher, but either by private or by public funds. The decision also mentions how the bank is trying to help borrowers through restructuring. We are this will be carried out and the mechanisms that will be used. Sharetalking here about clients who have a good chance of recovering and holders will be asked, by mid-2012, to cover this capital shortfall. In those that we believe will be able to fulfil their obligations to the bank. the event that they are not able to do so, the Hellenic Financial Stability Fund stands ready to cover this with 30 billion euros earmarked ■ Several Greek banks that operate in Serbia have entered into for that purpose. the merging process. Piraeus Bank is also occasionally menThese issues do not affect our relations with customers, other tioned. What can you tell us about these processes and the situbusiness relationships or daily operations. ation with your bank?

- The announced merger of Alpha Bank with EFG will be very posi■ In comparison to your business plan for 2011, in which segtive for both parties, chiefly due to the external investor who will ments have you made the biggest changes for 2012? pledge funds for capital increase. Piraeus Bank at present is not in - Our business plan for 2012 envisages growth for both loans and any negotiations regarding a merger. ■ cordeditorial@cma.rs

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Positive message

Business Dialogue Interview

“Referendum in Croatia is positive message to Serbia and other countries in the Western Balkans. They should take advantage of the momentum created by Croatia’s successful preparations for EU accession.” — Stefan Fule, EU Enlargement Commissioner

Dejan Jovićević, Director of Energoprojekt Visokogradnja

Profit Generated Abroad Energoprojekt Visokogradnja generates almost 90% of its revenue abroad, and only 10% in Serbia to us since we haven’t implemented big projects in the country. The implementation is pending. If we are talking about the business abroad, we have new contracts in Ghana (the town of Akra) worth 28 million euros and we have signed a 26-million-euro contract in Kazakhstan. Some parts of these contracts were realized in 2011 and most of them are going to be implemented this year.

E

nergoprojekt Holding is by far the best Serbian construction company. Energoprojekt Visokogradnja is a member of this holding company and generates one third of the holding’s annual revenue. Last year was a very successful one for the company, but this year should be even better. Good contracts have been concluded and Energoprojekt Visokogradnja has turned to the markets that were less stricken by the economic crisis – Russia, Kazakhstan and Ghana in Africa. We are talking to Director of Energoprojekt Visokogradnja Dejan Jovićević about the company’s plans and business activities this year.

■ You are building a residential building in Belgrade’s quarter of Voždovac which is aided by the state. How are the works progressing?

- We are building one 10,000 sqm building. The state is helping small and medium enterprises and we are glad to be a part of that. A total of 400,000 sqm of residential surface will be built and 80 companies are involved. Our building will have been finished by late May, its quality is exceptional and the flats in that building were sold the first since buyers are well acquainted with Energoprojekt’s quality. I have to say that other contractors are also doing a good job.

- Almost 90% of our revenue, which stood at 80 million euros last ■ What measures should state authorities implement in order to year, was generated abroad, and this year will be the same. These help the construction sector? markets are not so crisis sensitive and our long-term presence on - Firstly, we need to have a development bank that can provide them made it possible for us to achieve good business results in guarantees for export- orientated companies. Without export our 2011. The plans for the next year are even more ambitious and our country will not progress. Tenders need to be adjusted to domesrevenue should be in the region of 86 million euros. Unfortunately, tic companies in a sense of providing some kind of protection to the situation is completely different in our country and our revenue them. The current practice is that foreign companies win at most in Serbia was only 10%. Thanks to Energoprojekt’s long-term comtenders and hire our companies as sub-contractors. Reconstrucmitment to realizing projects abroad, Energoprojekt Visokogradnja tion of the Gazela Bridge, the Bridge on Ada and the Beška Bridge has managed to maintain its business activities Markets like Russia, Kazakhstan and Ghana, where Energoprojekt and be less affected by the economic downturn.

Visokogradnja is engaged on the most, were less subjected to the

■ What are the company’s plans for 2012? economic downturn compared to the European markets - Last year, we concluded new contracts worth 92 million euros. Thanks to the contract on construction of a new are the best examples of that. Our construction companies were sulfuric acid plant and reconstruction of the smelting plant in RTB mostly engaged as sub-contractors in those projects.

Bor, our business should generate around 24 million euros domestiIn order to realize big projects, we need big bank guarantees. cally. This contract will be implemented by Canada, Finland and SerWe have been cooperating with several banks, but if we had a debia, where Energoprojekt is the general contractor. Also, it is going velopment bank, interest rates would be lower and we would have to be the most important project in Serbia this year and signficant it much easier. ■

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DIPLOMATIC

Services

Dufry Diplomatic Services Serbia Phone: +381 11 205 41 47 Fax: +381 11 205 41 47 E-mail: diplomatic@rs.dufry.com http://diplomaticservice.dufry.rs

Compromise

Business Dialogue Interview

“There is always a chance. The important thing now is to focus on the dialogue and for both sides (Belgrade and Pristina) to show an honest intention to find a compromise in all issues that were brought up in December.” — Carl Bildt, Swedish foreign minister

Biljana Čvertkov, Acting General Director of JRB

- I would rather call it an investment cycle, which, in a way, started in the second half of 2011 with the emergency investment programme, will last until at least 2017, during which time our fleet is going to capacitated and overhauled. Since investments in shipping are long-term, whether we are talking about ships or barges, it takes time to either build, repair or fix them. We have decided to start with investing in facilities that will appear on the market first and, by doing so, form a basis for future investments. Through these investments we are going to harmonize our fleet in line with the latest standards, with an emphasis on newer generation engines with reduced gas emissions and on constructing vessels with double broadsides and double bottom which will make navigation much safer.

JRB’s 150th Anniversary In this jubilee year, the company has embarked on an investment cycle worth 40 million euros which is geared towards overhauling and renovating its fleet.

The Yugoslav River Shipping company (JRB), founded in 1862, is one of the oldest companies in Serbia

T

■ The company’s new management should be credited with consolidating JRB’s operations and embarking on new investments. How much did the broader cooperation with the Ministry of Economy and Regional Development and the Serbian Government contribute to that?

- It is the company’s managing board, which was appointed by the Serbian Government, which established the needed contacts between the government and the new management. We have recognized the Government of Serbia and the Ministry of Economy and Regional Development as our partners that share our intentions and strategic aim in preserving the essence of JRB in this difficult moment for the economy and increasing the value of the company through joint investments. Also, we agreed, that when the time comes for JRB to be fully privatized the state gets an economically sound and fair price for it.

■ JRB is the biggest company in international river transport in Serbia. Did economic woes affect your business operations, i.e. did the transport volume increase or decrease?

- It would be falsely modest if I didn’t say, with pride, that JRB takes one of the first positions in the international river transport in Serbia and we intend to stay in that position for a very long time. Concerning the economic crisis, i.e. its onset in August 2008, we felt the first impact in early 2009. JRB survived this crisis period thanks to its capacities for transporting both river and dry-land

his year, the company marks 150 years of its operations and shipping along the entire Danube River. In this jubilee year, the company has embarked on an investment cycle worth 40 million euros geared towards overhauling and renovating its fleet. This unarguably large endeavour will last for several years. The company’s acting director general Biljana Čvertkov talks about the way in which the investment is going to be realized and the company’s overall development.

Last year’s low water level on the Danube, which ■ You started 2012 with an announcement that the company will invest 40 million euros. Can you elaborate on this and when is this investment going to be implemented?

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surprised even seasoned shipping veterans, has caused more damage to JRB than the economic crisis since we had to stop our shipping activities twice due to force majeure

Asymmetry “It is not possible to find a solution without the Resolution 1244. “It cannot be done because the Resolution is the one that gives the essence to the asymmetry. We cannot accept the asymmetry that Priština has a blue plate and the other states the red one.”

— Borislav Stefanović, Belgrade team chief cargo, so if it occurred that at a certain point we had no river cargo to transport, we would step up our activities in transporting dry-land cargo or vice versa. Early 2011 was very promising since we concluded contracts with old partners and managed to secure good transport conditions. Unfortunately, during the main season for the shipping industry, i.e. in spring and autumn, we had to go through something even worse than the economic crisis – low water levels. Just like any other shipping company, we had no way of dealing with that and we were forced to declare force majeure on two occasions. Let me illustrate this with an example – our large barge, in full draft, can take up to 1,500 tons but when the water level is low that quantity is reduced to a maximum of 1,000 tons. This led to our revenue dropping by a third while the

■ Apart from transport, what other business activities are you engaged in and what are the expectations of your business partners?

- I think that JRB needs to keep on operating on the Danube and do what it knows best , which is offering its partners the safe transport of goods while making sure that their goods will be shipped in the best and fastest manner possible. The fact that we are right in the middle of waterways is the best reflection of our position and our future prospects.

■ What is JRB’s core activity and has the company’s business volume been increasing year-on-year?

- JRB’s main activity is the river transport of goods that makes up 95% of our work. The remaining segment of our activities pertain to providing agency services to domestic and foreign shipping companies since JRB has its agency in all major Danube ports – from Prahovo to Bezdan. Our business has been stagnating in the last two years due to the aforementioned reasons.

changed owners two or three times which is certainly not good for business. During this economic crisis, both private and stateowned companies are fighting for survival.

■ An attempt to privatize JRB has failed. Are you going to repeat the privatization process?

- You have to ask the Privatization Agency that. We, in the company’s management, are more concerned with operaJRB’s fleet is a medium-sized fleet on the Danube. The tional issues, fully employing the company’s capacities company has begun overhauling four of its ships and and revitalizing its fleet. I would like to add that the expects to acquire new vessels. JRB and Serbia will privatization of shipping companies, which operate on become visibly present with a respectable merchant fleet the Danube, did not result in these companies advancing. Some of the privatized companies have already costs were either the same or even higher. If you add that to the fact that we were at a standstill for two and a half months because of force majeure, then you can imagine just how difficult the situation was our company. As a side note, every year there is a period when the water level is low but it usually lasts for a month or two, but even seasoned shipping veterans cannot remember a time when the water level was low for the whole two and a half months. In short, during the economic crisis, our transport activities were reduced by 25% compared to better years. Last year, apart from the crisis, the low water levels and suspension of navigation seriously affected the transport volume.

■ What kind of fleet does your company have?

- Our fleet is one of the older ones which means that there are younger fleets navigating the Danube as well as older ones. We have started overhauling activities - four ships are currently being overhauled. Of course, we expect to acquire new vessels, but that doesn’t depend solely on us. If the Ministry of Economy and Regional Development renders the agreed support, JRB and Serbia will become visibly present on the Danube river with a respectable merchant fleet.

■ How much is JRB fostering the tradition of one of the oldest and the most important river shipping companies in Serbia?

- Just like the shipping industry, which was founded in Serbia in 1862, JRB is celebrating 150 years of operations and shipping activities in Serbia along the entire Danube River. There are very few companies that have such a long tradition as JRB. Looking back at the company’s history, I can tell you that JRB was the first shipping company to have used thruster systems on the Danube and, by having that, we made a huge leap forward in the modernization of river shipping in the 1970s. We are confident that we are going to continue to respectfully represent our country and its tradition for many years to come and that we will proudly continue to display the Serbian flag on our ships throughout the Danube River. ■ cordeditorial@cma.rs

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Turning point

Business Dialogue 01

“This is a big day for Croatia and 2013 will be a turning point in our history. I look forward to the whole of Europe becoming my home.” — Ivo Josipovic, Croatian president

Macedonia

Unique Double–deckers in Skopje Yutong company hands over 16 mini-buses for Skopje's public transportation system Chinese company Yutong has handed over all of the 16 mini-buses intended for public transportation in Skopje. After being homologated, they will be put into use in the public transportation, the Ministry of Transport and Communication has announced.

A procurement procedure for 68 new double-decker buses is underway, and will also be used for public transportation in Macedonia’s capital.

“The buses are expected to be transferred to Macedonia in March, several months earlier than agreed,” ministry officials say.

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02

Croatia

Advertising Tourism - €6.5 million!

The Croatian Ministry of Tourism has decided to spend all of the money allocated to the promotion of tourism on advertising offseason and winter travel, daily Vecernji List writes

The double-deckers are unique and designed in a 1950/60s style.

The buses driven in Skopje are not in serial production, thus cannot be found anywhere else. In addition to 68 double-decker buses, 80 lowfloor buses, manufactured in the Ukraine, have already been put into use. The remaining 66 double-deckers are expected to be transported by the end of 2013.

Hungary

The ministry’s has budget set aside 49.5 million kunas (€6.5 million) for promotion in 2012, the same amount as last year. The difference is, however, that no more money will be spent on promoting tourism at the peak of the season in July and August.

The National Tourism Board (HTZ) will have 12 percent less money this year than last year or 252 million kunas (€33 million).

Minister Veljko Ostojić said that they have simply adjusted to the crisis.

“We will not save on online promotion, but will on printed materials, TV advertising and Days of Tourism events,” Ostojic said.

Unfortunately that could mean that the manifestation will not have such splendid musical and gastronomy offers as before. Croatian Times

04

Bulgaria

05

Montenegro

Online Bank Registered New President WTTC: The Hungarian Company Court has Pledges to Raise Tourism - Great officially registered Webbank, founded Living Standards Opportunity to assist borrowers in converting their foreign-currency mortgage loans

The bank is to have Ft 3 billion (€9.8 million) of capital, 49% of that provided by the state and 51% by private investors.

Credit Association head Gyorgy Doubravszky first presented the idea of an online bank to assist foreign-currency mortgagors during November talks with the Economy Minister.

Webbank will have only one branch, but its operations will be based entirely on the internet, to keep operating costs low.

Doubravszky expects the government to contribute Ft 1.5 billion (€4.9.million), with the rest of the required capital to come from private investors.

Webbank will offer loans at lower rates than commercial banks, not only to retail customers but to SMEs in need of financing.

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Bosnia & Herzegovina

BiH Makes Adventure Tourism List National Geographic praises BiH for its mountain biking opportunities

Bosnia and Herzegovina is included in a list of the world’s top ten adventure tourism destinations for 2012, compiled by National Geographic magazine. The country, the only one from the Balkans to make it into the ranking, has been recommended for its great mountain biking opportunities.

“The ancient highland caravan routes that linked mountain towns for centuries now make for a heavenly single-track system for the knobby-tire set,” National Geographic magazine said.

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According to the WTTC (World Travel and Tourism Council), Montenegro is expected to be amongst the fastest-growing tourism-based economies in the next decade Rosen Plevneliev took oath as president of Bulgaria and pledged to work for the poorest EU member state to raise to bloc's medium living standards “My cause is to turn Bulgaria into a medium rich European state in which people live with dignity and where young people stay to live because they see prospects,” Plevneliev told parliament after his swearing-in ceremony.

The average monthly salary in Bulgaria is the equivalent of 350 euros. More than 1 million Bulgarians have fled their homeland since the 1989 demise of Communism to seek a better life in the West.

President Plevneliev (47), formerly a successful property developer, pledged to initiate a series of public debates on Bulgaria’s development and stream them live on the Internet.

Tourism’s total contribution to employment, GDP, exports, and foreign investments will rise in the next decade. The WTTC is very optimistic about Montenegro’s future trends in tourism.

In the next decade, nearly onehalf of all capital investment in Montenegro will probably be made in the tourism industry. The growth in Montenegro’s tourism sector will be higher than in most other countries (even China and India).

Elections

07

Romania

“Due to economic reasons, President Boris Tadić will call both the parliamentary and local elections on the same day.

It is almost certain that the elections will be held on May 6th.” — Slavica Đukić-Dejanović, Parliament Speaker

08

Twitter Swallows Romanian Summify Twitter acquires Romanian start up Summify from former Google and Microsoft interns

Agriculture Sector Could Create Jobs Mircea Pasoi (right) and Cristian Strat, co founders of Summify

Romanian start up Summify has been bought by internet giant Twitter.

Summify announced the move via their blog and their team will be moving to San Francisco to work from Twitter’s offices. The team of Romanians is currently located in Vancouver, Canada, where the start up moved two years ago to join Boot up Labs. Mircea Pasoi and Cristian Strat, a team of two Romanian hackers and entrepreneurs, started Summify out of their passion about technology and Internet startups. They both turned down job offers from companies like Google and Facebook and moved half-way across the world to work on their project.

The two founders also co-founded balaur.ro, a Romanian job search engine. The Summify team now comprises of six people.

In their statement the Summify team say, “Our long-term vision at Summify has always been to connect people with the most relevant news for them, in the most time efficient manner.” Twitter is described as the best platform to achieve these goals on a global scale.

Summify creates a daily summary of the most relevant news from the user’s social networks, and delivers it by email, web or mobile.

Twitter is an online social networking and microblogging service that allows its users to send posts of up to 140 characters. Twitter was on track for around $140 million (€108.7m) in revenue in 2011, up from a reported $45 million (€34.9m) the year before. Analysts forecast its revenues would reach the $400 million (€310.6m) mark by 2013.

09

Kosovo

Austria

Tourism Subsidies Set To Shrink The Austrian tourism industry may soon have to cope with a decline in financial support from the state

coming austerity measures.

Mitterlehner was optimistic about the current winter holiday Recent studies show that Ausseason, announcing that he was trian public and private compaconvinced of the competitiveness nies, various projects and other of Austria’s hotels and restaurants organisations get more than 15 after last year’s “slight upswing”. billion euros from the state per However, he warned that many year. The joint SPÖ-ÖVP adminhotels and guesthouses could sufistration plans to restructure its subsidisation programme to stop fer turnover decreases despite steady overnight stay figures. state debt from soaring further.

The Austrian Association for Economy Minister Reinhold Mitterlehner confirmed that get- Costumer Information, VKI, recently appealed to holidaymakting rid of mechanisms that help ers to compare lift pass prices. firms with numerous financial The organisation said small skicontributions for the same purpose was a key target of the coa- ing areas were charging less than lition. He spoke of a “potential for 300 euros for weekly passes for optimisations” of around 800 mil- a whole family whilst renowned regions were asking tourists to lion euros – and refused to rule pay more than 700 euros for the out that the domestic tourism sector will be spared from the up- same types of tickets.

Experts say Kosovo could potentially reduce both the unemployment rate and dependency on imports through the development of the agriculture sector Dardan Sejdiu, economy expert

Currently, farmland accounts for 53% of Kosovo’s total land area, and forests 41%. According to data from the Food and Agriculture Organisation, 741,316 acres of land are being cultivated and 444,789 acres are upland pasture.

The majority - 80% - of agricultural land is privately owned, providing subsistence farming for individual households.

The agricultural sector contributes around 13% of Kosovo’s overall GDP, and accounts for 16% of total export value. It’s an integral generator of national wealth, although Kosovo still imports many agricultural products.

“Kosovo’s Ministry for Agriculture and Forestry takes the needs and possibilities of the agriculture sector seriously, and has been offering subsidies for

10

years. Since 2008, in full compliance with the requirements of the European Commission, with full purpose of co-ordination of EU policies,” said Adil Behramaj, adding that to date, more than 27,000 farmers have “benefited directly”.

But Dardan Sejdiu, an economy expert with the Vetvendosje Party, disagrees. He tells SETimes that the government is not taking the sector seriously.

“Agriculture in Kosovo is only a priority for the rhetoric of the government, as now 12 years after the war, only 1.7% of the budget is allocated for the agriculture sector. Consequently it is not nearly enough for a country [in which] nearly 40% of the population is connected with agriculture,” says Sejdiu.

Albania

Bank Aid Conditioned on Reform The World Bank has started negotiations with Albania on a credit package of more than $100 million (€77.6m) to minimize the possible spillover effects from the European debt crisis

Reinhold Mitterlehner,

Austrian Economy Minister

Kseniya Lvovsky, World Bank

Albania country manager

Kseniya Lvovsky, World Bank country manager said that while media reports had mentioned a figure of $100 million, “I can tell you that it could be even higher.”

“Our main focus in 2012 will be to help Albania mitigate the impacts of the continued euro-zone crisis,” she added.

Government sources told Balkan Insight that the World Bank has set several conditions before it disburses the loan, however, including budget cuts and a rise in the retirement age.

The same sources said the government needed the money quickly and intended to use it to cover projected domestic debt in 2012.

The bank recently increased funds available for countries in South-East Europe for the next two years, mainly because private funds from European banks and remittances from emigrants working abroad are in free fall.

“Albania has the highest debt in the region,” Lvovsky noted. “The faster debt reduction is done the better,” she added.

Albania’s public debt increased over the last five years from 53% to just below 60% of GDP, mainly due to the cost of the Albania-Kosovo highway, a billion-euro public works project linking the two sister-nations. cordeditorial@cma.rs

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Good intentions

Business Dialogue 01

“Even the very good intentions cannot justify violation of international laws and state sovereignty. “ — Vladimir Putin

Poland

Euro 2012 - Poland's Economy Scores For the first time in history, Poland and the Ukraine have won the chance to co-host the Euro 2012 Football championship Despite the high set-up costs for the two emerging economies, both countries are likely to experience long-term economic benefits.

According to UEFA, on top of the estimated 670,000 football fans that will pack into the new stadiums in Poland and the Ukraine, around 1.5 million spectators will turn fan zones into the biggest party the two host countries have ever experienced. The economic benefits and impact on the stock market is difficult to determine precisely, although a variety of indicators suggest that Poland will at least indirectly benefit from the event.

High modernization costs of host cities, in addition to safety costs of almost $1 billion (€771 million), will push the total bill for the event to over $10 billion (€7.71 billion) in Poland’s case. The majority of the modernization bill has been allocated to motorway construction to connect the hosting cities and surrounding countries.

Roller Coaster

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Switzerland

Retail Hit by Uncertainty The Swiss retail sector faces a difficult year in 2012. The negative effects of consumer tourism, price erosion, and uncertainty, will likely continue to preoccupy the sector – if not as heavily as in 2011

In terms of the general economic climate, the outlook for retail in 2012 is mixed. As long as uncertainty about the outcome of the euro crisis persists and unemployment climbs, retail sales performance will be held back by poor consumer sentiment. However, immigration, which should drop slightly, but remain at a high level in 2012, will continue to have a positive impact. Falling retail prices will also counteract a loss of purchasing power. The “Retail Outlook 2012” study envisages that retail sales will also grow modestly in real terms in 2012, but are likely to fall slightly in nominal terms, however, due to falling prices.

According to the survey conducted by the consultancy firm Fuhrer & Hotz, within 200 decision-makers in Swiss retailing 38% of respondents are budgeting for stagnating or declining sales in 2012 compared to the previous year; in the case of profits, the figure is as high as 51%. The strength of the Swiss franc was one reason why 58% of businesses missed their 2011 sales targets and 43% their profit targets. Consumer tourism jumped sharply in 2011 by an estimated 20 to 30%, with Swiss retailers located close to the country’s borders particularly badly affected. The loss of purchasing power amounted to a total of around CHF 4 to 5 billion (€3.1 – 4.1bn) in 2011. Consumer tourism will continue to weigh on Swiss retailers in 2012, but following the massive increases seen in 2010 and 2011 is unlikely to become even more acute.

US

Goldman Sachs Saves Quarter

“The stock market is like a roller coaster. It’s going to move around quite a bit, but in the end it’s the best way to grow capital.

There are two ways to approach that. One is to watch it minute by minute, day by day and make yourself nauseous. The other is to create a plan with diversified investments, making sure you have your goals identified, making sure it fits within your risk tolerance, making sure your cash-flow needs are met. Then let it go.” Jonathan Bergman, chief investment officer at Palisades Hudson Financial Group, Scarsdale, USA.

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The investment spending will be beneficial for Poland, as long as the increase in GDP directly or indirectly allocated to Euro 2012 tops the costs. Four main sources of possible additional income exist: • Extra spending by tourists and citizens during the event.

• Extra spending generated after the event as a result of tourists visiting the host countries and cities.

• Benefits resulting from the upgrade of various infrastructure programs.

• Benefits resulting from presenting the country and its economy in a positive light.

A study commissioned by UEFA estimated extra spending during the event at around $300 million (€231.4 million) and $250 million (€192.8 million) thereafter.

02

Goldman Sachs cut compensation costs and expenses more than expected in the fourth quarter 2011

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Compensation as a percentage of revenues rose to 36.5% in the fourth quarter compared to 26% in the corresponding quarter of the previous year.

Analysts had predicted that Goldman Sachs might have far less flexibility to make major adjustments to compensation this time around, given competitive pressures. However, Goldman laid off 900 employees in the fourth quarter, more than anticipated, with total staff at the end of the quarter standing at 33,300 (34,700 on a consolidated basis.)

For the entire year, the company set aside $12.2 billion towards compensation expenses or 42.4% of revenues. That is down 21% from the amount set aside in 2010.

The investment bank’s 34,700 employees (includes staff at consolidated entities) earned an average compensation of about $352,248 in 2011. That is down 11% from 2010, when the firm’s 38,700 employees earned an average salary of $397,312.

Average compensation is computed by dividing total compensation expenses by the number of employees on staff at the end of the year on a consolidated basis. The averages are, of course, skewed by astonishing bonuses paid out to the company’s partners.

www.cordmagazine.com

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Angola

Angola Loses $18 Million Due to Idle Hours Angola is losing about $18 million (€13.8m) per year through workers idling away hours, particularly through activities with delayed starts The disclosure came from the chairman of the Angola Industrial Association (AIA), José Severino. Speaking to Angop on “Week Toxic Products”. José Severino considered toxic the habit of planning activities that get started hours over schedule. He said that about 100 to 300 workers, mainly those with the responsibility to make the country grow, idle their precious working hours away.

According to the official, should the ‘toxicity’ continue, it is estimated that on average, out of 12 activities per day, multiplied by 200 days, the country loses 360 hours.

Placements & Postings

Road to Nowhere “If you don’t know where you are going, every road will get you nowhere.” — Henry A. Kissinger

05

Russia

appointments@cma.rs

www.cordmagazine.com/corporate/appointments.html

Domodedovo Airport for Sale Offers to buy Domodedovo Airport will be accepted until Feb 7th by Goldman Sachs - the bank overseeing the sale of the airport

Holding company DME is looking to sell the airport for between $4–5 billion (€3-3.8 bn). Negotiations began in September 2011, but the current owners recently decided to resolve the issue more quickly.

Viktor Vekselberg, the controlling shareholder of Renova Group, who owns the airports in Yekaterinburg, Nizhny Novgorod and Samara, and Vitaly Vantsev, chairman of the board of Vnukovo Airport, said he and his partners might put in a bid for Domodedovo. Other potential bidders are believed to include Summa Group and Basic Element. Authorities are considering uniting privately owned Domodedovo with state-owned Sheremetyevo and Vnukovo into a single company after the sale, a Transportation Ministry source told Vedomosti Daily. The Moscow Times

06

Algeria

Algerian investment in NonHydrocarbons

Ratko Filipović, New President of Vojvodina’s Chamber of Commerce

The new general director of Carlsberg Serbia Group is Ralph Zigerling. Previously, Mr. Zigerling was vice president of Carlsberg Group’s Western Europe business development - the world’s 4th largest beer company.

As said in a statement, Zigerling officially became head of the office that operates in Serbia, Montenegro and Bosnia and Herzegovina, on the 1st of January 2012.

Zigerling acquired his knowledge and skills over 15 years by working in leading positions in the commercial, financial and marketing sectors of major international companies for the production of consumer goods, such as Nestle, Gate Gourmet, Procter & Gamble in the Near East, Scandinavia, Spain and Switzerland.

Ralph Zigerling, New General Director of Carlsberg

Non-hydrocarbon investments have hit $25 billion (€19.2bn) in the last five years in Algeria Speaking at a conference held by the Employers Forum, Abdelkrim Mensouri, CEO of the National Agency for the Promotion of Foreign Trade (ALGEX), underlined that Foreign Direct Investment (FDI) in 2011 multiplied three times compared to 2010, saying such investments are amongst the 7900 projects launched in 2011 in the sectors of pharmaceuticals, foodstuffs and construction material industries.

He further added that 33% of the $25 billion in investments in the last five years were not concerned by the 49/51 rule.

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US

Warren Buffett Defends Tax Rate Change

Bruce Steivel, New Director of the Serbian National Theater Ballet

Increasing taxes on the wealthy would bring fairness to United States taxpayers across the board, billionaire investor Warren Buffett said end January, backing the tax reform that President Barack Obama proposed in his State of the Union address

Mr Obama proposed a minimum effective tax rate of 30 percent on those who earn a million dollars or more, reviving his call for the so-called ‘Buffett rule,’ designed to prevent millionaires from paying a smaller share of income taxes than middle-class taxpayers.

Mr Buffett published an editorial in August stating that his own 17.4 percent effective tax rate was lower than that paid by wage earners in his office. He also said wealthy people should pay more taxes.

‘The question is what is fair when you have to raise multitrillions to fund the United States of America,’ said Mr Buffett on ABC News.

Ratko Filipović, who holds a degree in agronomic engineering, was elected as president of Vojvodina’s Chamber of Commerce. During his professional career, he has performed significant functions for the prosperity of companies where he has worked and always advocated for the improvement of all business processes.

As vice president of PKV, Mr. Filipović was determined to implement the application of contemporary marketing techniques and teamwork. In his role as president of the chamber, his strategic determination is on improving the chamber’s system, the development of resources and creating new potentials that will initiate new services and provide important corporative improvements.

Marina Paunovic, New Chief of Party, USAID Serbia Media Assistance Program, implemented

by IREX

Bruce Steivel is an internationally recognized choreographer and teacher. Previously, he served as the Artistic Director of Bern Stadt Theatre in Switzerland, the Hong Kong Ballet, the Universal Ballet of Korea and most recently Nevada Ballet Theatre.

He has trained and worked under some of dance’s most famous teachers and choreographers including George Balanchine, Jiri Kylian, Roland Petit, Anton Dolin, Ben Stevenson, Andre Eglevsky, Alexandra Danoliva, David Howard and Heinz Spoerli.

His international involvement continues with his position as the Artistic Director for the International Concours de Danse in Luxembourg, under the patronage of the Grande Duc and Duchess of Luxembourg.

Marina joined IREX as Deputy Chief of Party in November 2008. She led activities in the domain of digitization of TV, cooperation with partner stations, and new media projects. She graduated from the University of Belgrade in Electrical Engineering and Telecommunications.

Marina was the Country Manager of IDC for Serbia and Montenegro (2007-2008). She also worked for Booz Allen Hamilton (2005-2007) on the USAID Serbia Enterprise Development Project in the capacity of Senior Adviser for ICT. Between 2002 and 2005 she managed development projects at the National Information Technology and Internet Agency, Government of Serbia.

Marina gained experience in the media industry from 1990-2002. At TV Studio B (1990-1994) she was a video editor, graphics designer and vision mixer. She received technical expertise by designing broadcast facilities at the national BK Television (1994-2002), and several other stations in Serbia and Montenegro.

cordeditorial@cma.rs

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davos 2012

"We Need a Big Rethink" Angela Merkel, Germany’s Chancellor, has told the World Economic Forum that a “big rethink” is needed in the eurozone within the global economy German Chancellor Angela Merkel in Davos

”S

tructural reforms that lead to more jobs are essential,” she told delegates at the Swiss resort of Davos. “Do we dare to be more European?”

The eurozone is still struggling with a sovereign debt crisis and is trying to agree reform to its political system.

But many want Germany and other nations to boost the size of their rescue fund.

The International Monetary Fund (IMF) wants the eurozone to inject more cash into its rescue fund.

The IMF wants the sum available for bailouts to grow beyond 500bn euros ($647bn; £416bn) to ensure talks between private creditors and Greece do not grind to a halt.

The reserves could be bolstered by merging the temporary European Financial Stability Fund with the permanent European Stability Mechanism, according to IMF’s managing director, Christine Lagarde.

“If the two together could make a common fund, it would be a very strong signal of confidence in Europe,” she said.

The situation is urgent according to the

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be lent to stricken nations such as Greece IMF, which recently predicted that or to the eurozone’s bailout fund. the economic growth rate in Europe The UK decided not to take part in could halve this year from an eara new treaty, leading the other nations lier estimate of 3.3% if the euroto agree a “fiscal compact” between zone crisis remains unsolved. themselves.

Mrs Merkel disagrees with Ms Mrs Merkel would like the arrangement Lagarde about what is needed. to become permanent.

“We have said right from the “The main message of this fiscal comstart that we want to stand up for pact that we are working on - the fact that the euro, but what we don’t want is every country introduces a debt ceiling a situation where we are forced to in its constitution and that the European promise something that we will not Commission and the European Court of be able to fulfil,” she said.

Justice can control this - the main mes“Let us take a moment to reflect sage is: we are ready for more commitwhat lessons we have learned from ment. We are not talking our way out of the global financial and economic crisis. it,” she said.

“Is what we have learned sufficient?

Rather, Mrs Merkel said she would work There’s still room for improvement. There to ensure the EU develops “political strucwas a glaring lack of regulation that led to tures” to make the euro work properly. the predicament.”

“The message is that we are ready for Mrs Merkel said that the austerity remore commitment. We are no longer makforms being enacted - currently being felt ing excuses,” she said. from the Irish Republic to Italy - had to be “That is important because otherwise balanced with reforms of how Europe is we will continue to lose credibility. governed.

Last ye a r , the 17 nations “We have said right from the start that we want that use the eu- to stand up for the euro, but what we don’t want ro agreed to adopt is a situation where we are forced to promise reforms that would something that we will not be able to fulfil” allow European in“We have taken some steps closer to stitutions to punish nations that exceed a fiscal union, but we can get faster, gain their budget deficit limits. speed and become more decisive.

Mrs Merkel also acknowledged “ten“I’m absolutely convinced that we will sions” between countries that have adoptget out of this crisis.” ed the euro and those that have not inside The future of the world economy is the European Union (EU). high on the agenda as some of world’s Permanent arrangement most powerful people gather in Davos.

At a summit in December, most of the They meet annually in the Swiss resort EU vowed to add about 200bn euros to to discuss the state of the world. ■ the IMF’s resources - which in turn could

www.cordmagazine.com

faces & places 22.12.2011 The Military House of Guards The Military House of Guards in Topcider was too small to accommodate all the guests at the reception by the Minister of Defence and Chief of General Staff of Serbia, which traditionally, is organised on the occasion of the upcoming New Year and Christmas holidays. The curiosity of this year’s ceremony was that the role of host, besides the Defence Minister Dragan Sutanovac included the newly appointed chief of staff, generals and Diković Miletić.

27.12.2011 New Year’s Cocktail The Ministry of Justice’s traditional New Year’s cocktail in the Serbian Palace brought together a number of personalities from politics - Prime Minister Mirko Cvetković, Deputy Prime Minister Ivica Dačić, Ministers of the Serbian Government Dragan Šutanovac, Dušan Petrović, Srdjan Srećković, Zarko Obradović, German Ambassador Wolfram Maas and leaders of almost every state institution and media outlet.

Snežana Malović, Ministry of Justice and Ivica Dačić.

29.12.2011 Serbian Basketball Association The President of the Serbian Basketball Association Dragan Đilas was the host of a New Year’s cocktail, organized at Belgrade’s Zira hotel in the evening of the 29.12.2011.

Radomir Živanović (left) of Verano motors and Svetislav Pešić coach of Red Star basketball club.

Dragan Đilas (left), Velibor Sovrović, president of water polo association and Robert Coban from Color Press.

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31.12.2011 Ada Bridge Opening On New Years Eve the Ada Bridge was opened for pedestrians.

Serbian President Boris Tadić, Belgrade Mayor Dragan Đilas and President of the Belgrade Assembly Aleksandar Antić were amongst the first of many people who crossed the bridge.

01.01.2012 Street of Open Heart Serbian President Boris Tadić and Deputy Prime Minister and Minister of Internal Affairs of Serbia Ivica Dačić attended the traditional “Street of Open Heart” event, which is organized on the first day of every new year. This year’s gathering was dedicated to the Humanitarian Action “March for Babies.”

02.01.20112 Embassy of Indonesia At celebrations for Christmas and New Year 2012 the Embassy of Indonesia in Belgrade organized a gathering on the 2nd January 2012, at the Embassy, with all their employees and families, in addition to other staff of Asian embassies.

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faces & places 06.01.20112 Karadjordević Royal Court A Christmas Eve event, in the Karadjordević royal court, was organized on the 6th January in the presence of His Royal Highness Prince Alexander, Princess Katherine, their children and other distinguished guests.

From left to right: HRH Prince Peter, Prince Alexander, Prince Philip and Prince Alexander II all in front of the Royal Palace yule log on Christmas Eve.

09.01.20112 20th anniversary of Republic of Srpska To celebrate the Serbian patron St. Stephen Archdeacon and on the occasion of the 20th anniversary of Republic of Srpska, HRH Prince Alexander II and Princess Katherine visited Banja Luka, where they met with President of the Republic of Srpska Milorad Dodik, Milorad Džombić, Prime Minister of Republic of Srpska, Igor Radojicic, President of the Republika Srpska’s Assembly and the highest state officials. Princess Katherine visited the Home for Children without Parental Care “Rade Vranješević” in Banja Luka, and delivered Christmas gifts to the children.

11.01.20112 Privatization of “Elektroizgradnja”

12.01.20112 Christmas Reception

The first privatization contract in 2012 was signed on the 11th January between the Serbian Privatization Agency and Slovenian company Javne (public) razsvetljave doo for the privatization of “Elektroizgradnja” from Bajina Basta worth a little under 730,000 euros for a 70.43% stake.

The contract was signed by Vladislav Cvetković on behalf of the Privatization Agency and Stanko Furlan on behalf of Javna razsvetljave doo, in the presence of the Ambassador of the Republic of Slovenia to Serbia, HE Francis Booth.

On the 12th January, Serbian Patriarch Irinej organized a Christmas reception at the Patriarchy of the Serbian Orthodox Church. Amongst the guests were Deputy Prime minister Ivica Dačić, Director of Security and Intelligence Agency Saša Vukadinović, Police Director Milorad Veljović, general manager of “Srbijagas” Dušan Bajatović, lawyer Toma Fila, former Prime Minister Zoran Zivković and other prominent guests.

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The HQ of the Serbian Media Association was fully packed with distinguished guest.

Veselin Simonović (left), President of Media Assn. Goran Ćirić, Director of PTT “Srbija” and Defence Minister Dragan Šutanovac.

Ivan Stanković, CEO Communis Agency and Ivana Veselinović, Luka Beograd.

French Ambassador H.E. François-Xavier Deniau (left), Norwegian Ambassador H.E. Nils Ragnar Kamsvag and Italian Ambassador H.E. Armando Varricchio

Manojlo Vukotić, Večernje Novosti (left) and Miodrag Kostić, MK Commerce.

Vanda Kučera (left), McCann, Maja Kolar, Banca Intesa and Miroslava Nešić Bikić, Piraeus Bank.

18.01.2012 Traditional Annual Meeting The Serbian Media Association’s Traditional Annual Meeting was held for the ninth time in the headquarters of the largest media association in Serbia.

As is usual with the meeting, many guests were in attendance.

Chief Editors and media executives who gathered at the Association were joined by leaders of other media, the journalists association, numerous businesspeople and the highest representatives of the diplomatic corps and Government of Serbia, headed by Prime Minister Mirko Cvetković.

In addition to Prime Minister Cvetković, Ministers Dragan Sutanovac, Vuk Jeremić, Ivica Dacić and Ombudsman Sasa Janković, the Ambassadors of Germany, France, Italy and Norway attended the meeting. Amongst the other guests were representatives of companies and friends of the Association including Telecom, Delta Holding, PTT Serbia, Hemofarm, Bank

Prime Minister Mirko Cvetković talking to Veran Matić, B92, and Dušan Vlaović, General Director Dnevnik Novi Sad.

German Ambassador H.E. Wolfram Maas (left) and Branislav Novčić, aim

Jelena Krstović, Vice President Delta Holding (left), Ruža Ristanović, Executive Director aim and Nikolina Bobić, Executive Director, ABC Srbija.

Intesa, MK Group, Centroproizvod, Piraeus Bank, McCann Erickson, NELTM Communis and many others with which the Association has worked with successfully for years.

Chairman of the Media Association Board Veselin Simonović expressed his hope that 2012, despite the difficult economic situation, will be successful for all media houses and that the general economic recovery of the country will be achieved through the united contribution of politicians, businesses and mainstream media.

Members of the Media Association are the media houses: Company “Novosti”, Politika Newspapers and magazines, Press Publishing Group, Color Press Group, Fonet, Adria Media Serbia, Dnevnik-Vojvodinapress, alliance international media (aim), Vreme, Europapress, Info Lokal Media Group, NIN and Ringier Axel Springer. cordeditorial@cma.rs

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culture calendar coNcerts LEGENDE sava Center, 4 & 14 February @ 20.00 The group Legende is celebrating the jubilee in 2012 – amazing 25 years of their successful work. This impressive anniversary will be celebrated together with their audience. Legende prepared magnificent concerts on 4th and 14 February 2012 in Sava Center.

The group “Legende” was founded in Belgrade in 1988, when they also released their first album. The first group of their concert season began on 19th January 1995, concert in Belgrade’s Sava Center. The tradition continues, and every new concert season begins in the Sava Center, after which Legends continue with a tour of cities in Serbia and abroad.

To date, Legende held over 1300 concerts in Serbia, Montenegro, Macedonia, Bosnia and Herzegovina, Hungary, Poland, Cyprus, Sweden, Slovenia, Switzerland, Austria, Canada, Germany, Australia, USA and Russia.

Jubilee - the thousandth concert was marked by a celebration on 5th February 2005 and the twentieth anniversary was marked in February 2008, also during a concert in Sava Center. Tradition continues.

VAMPIRI sava Center, 10 February @ 20.00 After a fifteen-year break, Belgrade band Vampiri is making a comeback to local music scene with a long awaited concert in Sava Center.

Their concert is scheduled for 10th February in the Great Hall of Sava Center, starting at 20:00.

Vampiri will perform as a sextet, led by frontman Aleksandar Erakovic-Era. From the original cast there is also Dejan Tomović-Tomke on keyboards. New members are: Damian Dašić - drums and backing vocals, Marko Calić - lead guitar and backing vocals and Andrew Bucan - saxophone.

After more than a decade the audience will have the opportunity to hear Vampiri hits from all five albums (Rama-lama-ding-dong, Love is a dream, Malena, The Blue City ...), as well as songs from the blockbuster movie “We are not angels” (Be-be, Saturday night, A teenager in love ...).

Vampiri promise surprise guests and a ride through a musical time machine.

IBRICA JUSIĆ sava Center, 11 February @ 20.00 Drawing on elements of the French chanson Ibrica Jusić throughout the years created a distinctive and authentic artistic expression, featuring poetry and intellect, as well as composing the poems of famous poets. His songs are influenced by Italian, French, Croatian and Bosnian music. During his career, Ibrica recorded 17 albums. He is of the first singers in the former Yugoslavia who made LP record and has had concerts in almost all major world venues such as Sydney Opera House, Carnegie Hall and the Theatre Stockholm.

TONI CETINSKI belgrade arena, 14 February @ 20.00 “Furia Tour” Toni Cetinski’s last year tour, proved to be one of the best pop performers in the region. His love of music, vocal skills, energetic performance and the power of direct communication with the audience, caused delight to all visitors of his concerts.

Concerts sold out in Serbia, Croatia, Slovenia, Bosnia and Herzegovina are the proof of the 20 years a successful career. Concert “Discovering Passion” to be held on 14th February in Belgrade Arena is a step further and a new experience for singer’s loyal audience.

It is the project “Discovering Passion” in which Tony sublimates his passion for rock, pop and classical music.

NEMANJA RADULOVIĆ Kolarac, 3 February @ 20.00 At 25, Nemanja Radulović sets aflame concert halls in every appearances of his thanks to his performances and his stage presence. He was recognized as the “International Revelation of the Year” at the Victoires de la Musique in 2005 (European Association of Artist Managers, MIDEM prize), was nominated as “Rising Star” in 2006 and plays in the most important European concert halls: the Concertgebouw in Amsterdam, the Megaron in Athens, the Cité 56 |

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de la Musique in Paris, the Palais des Beaux-Arts in Brussels, the Philharmonie of Cologne, as well as at the Carnegie Hall.

On 3rd February Nemanja will perform Vivaldi ‘Four Seasons’.

This concert is not to be missed by classical music lovers. www.cordmagazine.com

To all who choose to celebrating Valentine’s Day with Toni Cetinski at the Belgrade Arena, a very special program awaits them.

Toni Cetinski will perform his best pop hits, like “When a woman loves”, but also global hits in the original arrangements. Visitors are expected to experience very special

ROBY LAKATOŠ Kolarac, 5 February @ 20.00 Roby Lakatoš is a Romani (Gypsy) violinist from Hungary. He is renowned for his mix of classical music with Hungarian Romani music and jazz themes. Lakatoš is not only a scorching virtuoso, but a musician of extraordinary stylistic versatility.

YAMATO belgrade arena, 28 February @ 20.00

The most attractive Japanese percussionists, drummers Yamato, last year delighted the audience at the Sava Center with its unusual and comic performances and therefore scheduled another appearance, 28 February in the Belgrade Arena as a part of the tour called Gamushara – The Beat of Courage.

Central to the Yamato productions are of course Vadaiko drums. It is the drums from animal skins and wood of ancient trees, some of which are over 400 years old. They are like a heartbeat or pulse (Shin-on). They are the essence of life and source of strength that emanates from human body. Yamato tries to create the energy of life that is transmitted to the audience.

What audience feels when surrounded with Vaidako sound produced by powerful bodies of performers, is what Japanese call evening filled with great music in an unprecedented performance by Toni Cetinski and his guests.

Crossover trilogy “Discovering Passion” in its name already suggests a musical journey through three musical directions. Visitors will enjoy also Toni’s performances of “Karuza”, “Nessun Dorma” and rock hits like “Here I go again “,” Final Countdown “...

All the songs that Toni will sing at the Belgrade concert are prearranged and will be performed with accompaniment of his band and the Zagreb Philharmonic Orchestra, conducted

by Ivo Lipanović. clAssicAl Music RISING STARTS CONCERT Kolarac, 5 February @ 11.00 Mariana Buslehner, flute Alisa Bešević, piano Milica Zulus, violin Nataša Veljković, piano

“Tamashi” - a `soul`, `spirit`, `psyche ‘, which is the basic element of life.

This is something invisible, but whose presence is certainly felt. Pulse, which is transmitted from the ancient days, echoes in all bodies of people who gather in the halls around the world. This is a stage show that celebrates life.

To date, the Yamato drummers have had over 300 performances in 45 countries. In 1994 their four concerts in China gathered 20,000 visitors.

Yamato performed at the Edinburgh Festival, the biggest art event in the world. They sold out 23 concerts, received an award from Spirit of the Fringe. The British media called them “music of the body.” After these stepping-stones their world tour began, which lasts for 12 years now.

BIG BAND RTS - REGIONAL GUITAR SUMMIT Kolarac, 16 February @ 20.00 Conductor: Ivan Ilić Guests: Čarli Jurković (Croatia), Kornel Kurina (Hungary) bAllet SWAN LAKE national theatre, 2 February @ 19.30 Tchaikovski’s ballet Swan Lake that was performed in Belgrade for the first time in 1925 will have its first performance this year in National Theatre on 2nd February. oPerA DON CARLOS national theatre, 4 February @ 19.00 Verdis’s opera ‘Don Carlos’ will be performed on 4th February in Belgrade’s National Theatre.

culture news dANce ST SAVA GETHERING OF YOUNG AGRICULTURISTS sava Center, 5 February @ 10.00

Fund for the continuing education of young agriculturists - Borka Vučić, one of the few non-governmental institutions for the revival of the village life in Serbia, has more than a decade of its activities.

The Fund started with a noble mission to draw attention to the almost forgotten young people living in rural areas, in order to help them with additional training in newly developed world and give a helping hand to modernize their operations and achieve higher revenue growth and increased quality of life.

Continuing its mission, the Fund aims to achieve the final result of producing a richer and more advanced life in Serbian villages, and also preserving traditions and customs of the Serbian people in rural areas.

This year St Sava gathering will provide audience with a rich cultural and artistic program, agricultural fair in which exhibitors will give special emphasis on new developments and support of rural life and agricultural products. Also competition will be held among pupils from agricultural secondary schools.

street oF oPeN heArt belgrade downtown 1 January Traditionally several thousand people gather on the 1st January in Belgrade’s downtown area to attend a humanitarian gathering organized by Belgrade City Council.

The Open Heart Street event this year included “the March for the Babies” - part of B92 Fund’s campaign to raise money to buy baby incubators for hospitals across Serbia.

President Boris Tadić, B92 Fund President Veran Matić and Dejan Veselinov of the Belgrade Tourist Organization addressed the citizens gathered between Takovska and Makedonska streets.

This year, money will be collected from sales of red ribbons, while proceeds from this and sale of other items will be used to buy equipment needed for children.

The Serb Tavern (Srpska Kafana) organised their traditional New Year’s Day lunch for their guests - with Atelje 212 Theatre actors taking on the role of waiters.

Eleven other Belgrade municipalities this year also hosted similar humanitarian events, dubbed The Open Heart City.

GLENN MILLER ORCHESTRA sava Center, 18 January Concert was a part of the In the Miller Mood Tour, a sort of tour extensions of the Evergreens in Swing Tour, which has achieved great success, and within which this ensemble for two years had 260 performances in 17 countries throughout Europe.

While naturally the main focus are the Miller's compositions and his unique sound, new addition is reflected in homage to musicians Woody Herman, Count Basie and Harry James as well as reminder of the Ella Fitzgerald as one of the best singers of all time.

Thus, compositions like ''In the Mood'', ''Moonlight Serenade'', ''String of Pearls'', ''Little Brown

Jug'', ''Stairway to the Star'' and ''Somewhere Over the Rainbow' 'bring a touch of the thirties and forties of the last century.

Will Salden is conductor of Glenn Miller Orchestra. He was appointed to lead the Glenn Miller Orchestra for Europe back in 1990 and has since annually held 200 concerts, which makes them one of the most active orchestras in the world.

THE HEAT museum of african art, 24 January

The exhibition "The Heat" is a photographic record of the meeting of cultures, marked by a wedding ceremony, first in Belgium, followed

by Burkina Faso. Katarina Radović’s photographs are outcome of the questioning of a marriage as a phenomenon when private and personal on the one hand collide with the public, collective, ritual and symbolic in their extremes. The whole phenomenon of wedding is further compounded when two people and their social forms of "private" and "public" are coming from different cultures. Wedding, first in Belgium, then in Burkina Faso, emerges from the idea of marking a symbolic meeting and "eternal" bonding of two people, while the process includes those who are ‘extensions’ of the two people to be married, their family and 20th ceNturY boYs dom omladine 20-22 January One of the best manga of all time, “20th Century Boys” by Naoki Urasawa, was screened in Belgrade’s Dom Omladine during January.

20th Century Boys is the most expensive Japanese film project of all time. Trilogy has cost more than 6 trillion yens and casted over 300 actors. Urasawa, who became famous with his masterpiece “Monster”, went even further with the complexity of the story and characters.

Trilogy experienced considerable success in both U.S. and Europe.

The story follows the main character Kenji, faced with a painful mid-life crisis who suddenly gets drawn into a mysterious conspiracy theory whose roots go back to his games as a child. Trilogy is one of the top rated and most expensive undertakings of contemporary Japanese cinema, and is a real treat for all fans of the comic book movie adaptations.

Viewers had the opportunity to watch the entire film trilogy “20th Century Boys” made in 2008. Sakurabana in cooperation with Dom Omladine organised the three days screening.

friends. They are requested to step toward the ‘other and different’ that they are not necessarily looking for.

The photographs are dominated naturally by couples - two people getting married, two cultures, two religions. The viewer is hard to resist the mental contrasting and binary opposition: man / woman, black skin / white skin, Islam / Christianity...

Katarina Radović photo exhibition - "The Heat" at the Museum of African Art, on the one hand seeks to highlight the inevitable social contrasting arising from the "meeting of cultures", but also the possibility of merging into a harmonious whole, with a very personal encounter between two people.

el bulli: cookiNg iN Progress sava Center 28 January

Last month Belgrade audience had the opportunity to watch screening of interesting documentary about Spanish top chef Ferrand Andria, who is considered to be one of the best Spanish chefs and one of the most innovative chefs in the world. His restaurant “El Bulli” not only won the title five times as “Best restaurant in the world”, but it also has three Michelin stars. Every year, restaurant receives over 2 million requests for reservations. In 2010 Ferrand Andria decided to close the restaurant and turn it into a foundation “El Bulli”, a nonprofit organization whose goal is to promote culinary creativity.

German director Gereon Wetzel and his team followed Ferrand Andria during 2008 and 2009 to record the process of creating a new menu for the next season. The intention of the documentary is to show what happens on the world famous stove.

Screening is organised by Instituto Cervantes.

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interview sloboDan tIšMa, WritEr, nin’s laurEatE

Passion ReWaRDeD ■ By Zorica toDorovIć MIrkovIć

In his interview for CorD, this modest, quiet and, in his words, “old fashioned” man says that having been engaged in various artistic directions and styles helped him with developing his own literary expression

W

riter Slobodan Tišma (65) is the recipient of the NIN Award for his novel ’Bernardi’s Room’ which has been published by the Novi Sad Cultural Centre. A total of 106 literary works competed for the award, six being shortlisted. According to the jury, Tišma’s manuscript stood out because of its special view of human isolation and artistic self-sufficiency that he communicated to readers in an exceptionally convincing manner. According to the jury president, Vasa Pavković, Tišma’s book is the carefully orchestrated meditative prose of a distinct writer, musician and performer whose values have enriched contemporary Serbian prose, thus bringing it closer to modern prose in the rest of the world.

to communicate with those on ‘the margins’ and participate in so-called ‘showdowns’. That is my world and I am eagerly awaiting poetry showdowns where I will be on an equal footing with completely anonymous participants who write and love poetry just as much as myself.

■ How did the novel ‘Bernardi’s Room’ transpire and what is it about?

- When a friend of mine asked me to write a story about old cars I didn’t even presume that the manuscript would actually become the beginning of a novel. ‘Bernardi’s Room’ is about an outsider called Pišta Petrović, who lives in Đurvidek, i.e. Novi Sad. Friends, acquaintances and various strangers ‘move in’ with him at various stages and he decides to ‘move out’, with a sleeping bag, to an old wrecked Mercedes. In the car, Pišta spends his time contemplating ■ When asked what this and his others awards meant to the universe, which is pure poetry. My hero is fighting for him he said: gratification and pleasure - It is an honour to be the I did not expect the nIn Award and and demonstrates how we, recipient of this most presin adverse life situations, tigious literary award as it don’t seek awards as a validation can feel better and be joyous is undoubtedly the crownof my work. Back in the day, I even about tomorrow. He is lonely ing achievement of my literary opus. I did not expect claimed that I would never accept any and this loneliness is actually to receive it and don’t seek awards for any of my artistic pieces a smoke screen for the fear of loneliness that he suffers awards as a validation of from, the cover for his perennial search for satisfaction. my work. Back in the day, I claimed that I would never acAnd we, just like Pišta, live to enjoy. cept any awards for any of my artistic pieces. But, in the meantime, I guess my view became somewhat ‘tainted’ and I betrayed the pledge which is something I feel quite guilty ■ What kind of readers do your books speak to? about. My first award was ‘Stevan Sremac’ - in 2005 - for my - My desire is for my books to be read by as many people as book of poetry ‘Urvidek’, and last year I received the ‘Bilpossible. That, of course, depends on how communicative jana Jovanović Award’ for my novel ‘Quattro Stagioni’. All of of a writer I am and how much of my writing is understandthese recognitions, including the NIN Award, are not going able to the readers. I am a more of a philosophical writer. to greatly affect my life. I will live just as before, continuing That could be a flaw, but I cannot renounce it and cannot

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be somebody else. I am not into journalism and don’t write serial stories or something that I would call ‘ancient literature’. I am primarily interested in art. I talk about an experience located in the past that has undergone a certain transformation and which, in the end, becomes epitomized in language in my literary work. And, by default, that is always an autobiographical experience.

■ You often underline that poetry is most important

other hand, music is the best example of how to build up a particular form as a way to express oneself. A whole composition is born from one tone that is then composed into others. The same goes for a novel. By merging segments, drawing out and hinting certain motifs, which culminate in the finale, you are creating an entirety. Just like in music.

My writing has this element and, in that respect, music is a good teacher.

■ Do you have any plans for writing a new book?

- Maybe, but I am a spontaneous person and don’t plan anything, including my - As a prosaist I use the My desire is for my books to be read by writing. Who knows what form of prose, but also will move me, but what is possess poetic feelings as many people as possible. that, of is that I write from and excitement. In the course, depends on how communicative certain experience. I can write words of the poet Antun of a writer I am and how much of my about something that is far Branko Šimić – “Poets are a wonder to the world.” To writing is understandable to the readers away, imprinted in time...

My novel ‘Bernardi’s Room’ quote my mentor profeswas written based on my experiences in the sor Sreten Marić: “A novel is good only if second half of the 20th century. It sprouted there is poetry in it. If there is no poetry, it from the seal of that time. is worth absolutely nothing.” The question here is – what is poetry today? People see poetry in different ways and, as a genre it ■ One could argue that those years were has changed so nobody knows what the difficult for you. How much of that reflectterm exactly entails. If you say that someed in your writing? body is a lyrical prosaist, that is not a par- Looking from this perspective, it wasn’t ticularly a good qualification. My thinking that difficult. There were some internal is that poetry is something that is much breakdowns that were the result of varideeper than lyrical discourse. It is closer to ous events which crucified me from the inphilosophical deep thinking. That is what side. I was troubled by tumultuous feelings, we mean when we say that prose need to pressed by many woes. Of course, these have something poetic. emotions coloured my work and they are discernable in ‘Bernardi’s Room’. However, there is the other side. In my life, I have always overcome ■ When you were young, you made music and, as you say, troubles with the help of innate joy and have been lucky to music aroused emotions in you and made the world more have always been saved by art. beautiful. Is there a connection between music and writto you and that prose is just a form to express poetic feelings.

ing, between notes and words?

- Yes, definitely. Listening to music is my basic need. It is not a leisurely activity or a way to relax. It is a sort of meditation and utter commitment. Music hones emotions; it emits an unbelievable range of delicately nuanced feelings that cultivate a man. At least, that’s my opinion, and I am sure that music can have the same affect on everybody providing that they listen and hear it in the proper way. On the

■ Your award-winning novel will now have its second edition and you have received the first offer for the book to be translated.

- Since the first edition, 500 copies, is almost sold out, the second one will have 3,000 copies - the Novi Sad Cultural Centre has decided. Also, we have received the first offer from Macedonia for the book to be translated. ■

nIn JURY

BIoGRAPHY

Members of the jury were the following: Vasa Pavković, Ljiljana Šop, Vladislava Gordić - Petković, Mileta Ađimović Ivkov and Mića Vujičić.

Slobodan Tišma was born in Stara Pazova in 1946. He is a writer and musician, and the founder of cult new wave bands like Luna and La Strada.

So far, he has released the following poetry books – ‘Marinizmi’, ‘Vrt Kao To’ (‘Garden Just Like That’) and ‘Urvidek’. Tišma also occasionally wrote journals for literary magazines called ‘The Blues Diary’. In 2009, he released a novel called ‘Quattro Stagioni’. ‘Bernardi’s Room’ was published in 2011.

cordeditorial@cma.rs

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feature European Festivals

Festival

time

A

festival or gala is an event, usually and ordinarily staged by a local community, which centres on and celebrates some unique aspect of that community and the festival itself. Whilst among many religions, a feast is a set of celebrations in honour of God or gods.

A feast and a festival are historically interchangeable. Europe is extremely rich in festivals and holidays, be them Christian, pagan or non-religious.

Here is the list of some of the most popular European festival you may want to visit this month:

Italy

Viareggio Carnival 5th, 12th, 19th, 21st, 26th February and 3rd March Italy’s maddest event with parades sporting huge puppets among the kaleidoscope folk, revelry of all sorts and fireworks...Mainly on successive Sundays.

Germany

Cologne Carnival 16th – 22nd February Kolner Karneval Germany’s answer to Mardi Gras, a huge event marking the beginning of Lent, local festivities and a monster Rose Monday parade.

Italy

Ivrea Carnival 6th – 22nd February - The 21st is the big day with the 'Battle of the Oranges' Storico Carnevale di Ivrea, Piedmont district of Turin - another colourful carnival, but with a different ending as the whole town partakes in a monstrous orange fight, the Battaglia delle Arance. Wear a tall, red hat if you don’t wish to participate [or was it don’t wear a tall red hat...?].

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Spain

Sitges Carnival 16th – 22nd February Near Barcelona – Spain’s wildest, gayest party of the year. The Spanish are not normally known for being wild but at this event they really let their hair down.

Belgium

Binche Carnival 19th – 21st February

France

The Carnaval de Binche - one of Belgium’s wildest parties, a UNESCO Heritage event and half an hour south of Brussels. Sunday and Tuesday are best.

Nice Carnival 17th February – 4th March [Wednesdays and weekends] The Nice Carnival in the Cote d’Azur is a brilliant event on the lovely promenade of a terrific city, however although not every day, the parades are basically the same so going to one is probably enough. Half an hour along the coast, Menton holds a small but colourful ‘Lemon’ Festival at approximately the same time as Le Carnaval de Nice.

Italy

Venice Carnival 11th – 21st February A colourful, fascinating, funny and superbly costumed environment in the spectacular St Mark’s Square and the misty, magical streets that surround it. For the full flavour, buy a mask, rent a costume and go to a palazzo ball [the best is Doge’s Ball]. cordeditorial@cma.rs

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feature sporT – BRaZiL eMBaRKiNG ON a LONG aWaiTeD TRaNSFORMaTiON

cash caRNiVaL ■ By Max WiLLiams

We all know it’s going to be BIG, and according to Brazil’s Ministry of Sports calculations, the FIFA World Cup in 2014 is also going to be a cash cow for the country. They are forecasting at least €55 billion as a result of its hosting the World Cup, a combination of the revenue generated by direct and indirect taxes and an increase in consumption of Brazilian goods and services by an estimated €2.37 billion for the period leading up to and during the Cup 62 |

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WORLD cUp 2014

the World Cup, though infrastructure improvements are expected to cost much more than that. During the Pan xperts forecast 600,000 American Games of Rio de Janeiro in tourists going to Brazil for 2007, the government estimated costs the games, which could associated with the games to come in bring in an additional at R$500 million, or €254 million. Fi€1.97 billion for the Branal estimates before the games were zilian travel industry. €1.8 billion substantially.

Around three million BrazilRecently, FIFA President Sepp Blatian tourists are expected to travel ter said that there throughout the country as well, experts forecast 600,000 were concerns potentially gen- tourists going to Brazil for about preparaerating an adthe games, which could tions for the 2014 World Cup in ditional €2.6 bring in an additional Brazil, adding he billion for travel €1.97 billion for the was taking action and tourism.

The figures were Brazilian travel industry personally and will meet the govannounced by ernment in early 2012. “The executive Ricardo Gomyde, special advisor to committee is worried about that,” he Brazil’s Ministry of Sports. said when asked about preparations for On the expenses side, FIFA estithe showpiece tournament, which have mates that Brazil will have to spend been dogged by fears they are running at least €3.95 billion to get ready for

E

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World Cup events) maybe 10 will be ready. As to work on public transportation, none of the cities involved will be able to complete it fully.”

Romario’s latest comments come after Brazil’s Sports Minister Aldo Rebelo played down concerns over the country’s preparations for the 2014 FIFA World Cup late last year, stating that the tournament could be staged in two months’ time if necessary. Rebelo had said that the Beira-Rio in Porto Alegre is the only stadium out of the 12 set to host the World Cup that has fallen behind schedule. Meanwhile, Rebelo maintained Brazil’s wider infrastructure will be able to cope with the World Cup, citing the huge mobilisation of people during carnival season as an example of its major event prowess. “People might think that I’m exaggerating, but my impression is that if Brazil had to organise the World Cup in two months’ time, we would be ready,” Rebelo had told the government-run NBR channel. “We can do everything which is planned for the World Cup.” Brazil’s President, Dilma Rousseff, is confident Brazil can deliver the stadiums on time. Ms Rousseff has prom-

completed ahead of schedule. behind schedule. The world footballing Footballer-turned-politician Romarbody said it had received positive news io has recently issued a new attack on about stadium construction, but not Brazil’s preparations for the 2014 FIFA about the necessary governmental guarWorld Cup stating the country won’t be antees on the organisation of the event.

“100% ready” to host the tournament.

“We are concerned,” said Jerome Valcke, FIFA secretarygeneral. “Clearly Brazil is the Brazilian federal government has earmarked R$3 billion (€1.8 billion) not advanced in preparations for the World Cup,” for investment in works relating to he said, citing a lack of the 2014 World cup infrastructure including a new airport and poor public transport and roads.

According to a report by the Getulio Vargas Foundation and the consultancy, Ernst & Young, Brazil needs more than €8.6 billion in investment to fix roads, boost hotel capacity, reinforce security and develop its telecommunications network ahead of the Cup. Late last year, FIFA warned Brazil anew about delays in construction ised the new stadiums and other inThe legendary Brazil forward, who projects expected to be ready for the frastructure required would be ready is now a federal Congressman for the quadrennial extravaganza. on time, despite major difficulties and Socialist Party, has been a vocal critic Brazilian authorities are racing to delays. “Investing in infrastructure is a of both the local organising committee build or renovate 12 stadiums in time way of saying no to the international and FIFA. Romario has said: “I think for the event, and Sports Minister Aldo crisis affecting countries in the Eurothat (Brazil) won’t be 100% ready.

Rebelo pledged earlier this month that zone and the US,” Ms Rousseff said.

Of the 12 stadiums (that are to stage work on the venues will largely be cordeditorial@cma.rs

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“over the next few years we will have a consistent influx of investments.

The 2014 World cup will enable Brazil to have a modern infrastructure.” ricArdo teiXeirA, CBF President

try for the Treasury said that it shall be “Granting tax exemption to the stadiums of the World Cup, which shall not need to pay Industrialized Products Tax (Imposto sobre Produtos Industrializados - IPI), Importation Tax (Imposto de Importação - II) or social contributions (PIS/COFINS).”

In addition, the 12 cities that shall be hosting the World Cup matches shall be able to grant exemption from State Value Added Tax (Imposto sobre Circulação de Mercadorias e Serviços - ICMS) on all operations involving merchandise and other goods for the construction or the refurbishment of the stadiums.

In September 2009, the Brazilian Development Bank (Banco Nacional de Desenvolvimento Econômico e Social BNDES) opened a credit line of R$ 4.8 billion (€2.7 billion) for the World Cup

of the venue cities, increasing their caBrazil is setting aside hundreds pacity and comfort for the hundreds of of millions to update its stadiums, inthousands of tourists expected for the cluding the Maracana in Rio de Janeiro Cup. A significant amount (55.3%) of which hosted the 1950 World Cup final. the money will be spent overhauling That money will be spent in several arethe airports of Sao Paulo and Rio de as as Fifa’s inspection report has identiJaneiro. The investment figure covers fied 18 grounds with more than 40,000 works to be carried out up to 2014. capacity that could host games. These The Brazilian federal government could be whittled down to nine or 10 in has earmarked R$3 billion (€1.8 billion) time for the big kick off in 2014. for investment in works relating to the The CBF estimates that the cost of 2014 World Cup. According to the Braconstruction and remodelling of stadizilian minister of cities, Márcio Fortes, ums alone will be, approximately, over the bulk of funds should go to works R$1.9 billion (€800 million). In addipertaining to the tournament itself. tion to the stadium upgrades and renovations, there will be millions more spent on basic infrastructure needs to get the country ready.

When informed of the decision to host the tournament, CBF President Ricardo Teixeira said: “We are a civilized nation, a nation that is going through an excellent phase, and we have got everything prepared to receive adequately the honour to organize an excellent World Cup.” “Over the next few years we will have a consistent influx of investments. The 2014 Footballer-turned-politician Romario has World Cup will recently issued a new attack on Brazil’s enable Brazil to have a modern preparations for the 2014 FIFA World cup infrastructure,” Teixeira said. “In stating the country won’t be “100% ready” stadiums. Each host city shall be able The minister has also said that social terms will be very beneficial. to finance up to R$400 million (€225 preparations for the World Cup alOur objective is to make Brazil become million) or 75% of the project, with ready include the creation of a line of more visible in global arenas,” he addbank funds. financing for renewing the bus fleet ed. “The World Cup goes far beyond a The World Cup is going to be masacross the country. The line will be mere sporting event. It’s going to be sive. Brazil, with its history in the game made available by the Brazilian Fedan interesting tool to promote social and love for the sport will put on a eral Savings Bank with total funds of transformation.” - He failed to add that spectacular show – and probably creR$1 billion (€600 million). it was a very expensive promotion of ate as much drama off the field as on, Brazil’s federal government an‘social transformation’. with politicians and prominent figures nounced in May 2010 that it will grant In August of 2009 the state airport already being accused of underhand tax breaks for the construction and management agency Infraero unveiled dealings. The World Cup 2014 will be refurbishment of the stadiums for the a R$ 5.3 billion (€2.3 billion) investthe carnival of all time.

2014 World Cup. In a note, the Minisment plan to upgrade airports at ten

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Olympics 2016

R

io de Janeiro will host the firstever Olympic Games in South America August- September 2016. The event will generate numerous trade and investment opportunities in several areas, for both the games and the city.

The state government of Rio de Janeiro estimates that investments until 2016 will reach €39.5 billion for construction of sports and transportation infrastructure, public security, education and training, etc. Although more than half of Rio’s Olympics venues are already built, since Rio hosted the 2007 Pan American Olympic Games, about 20 new facilities are set to be constructed.

Works include:

• An aquatic sports stadium, a permanent structure with 18,000 seats.

Its construction cost is estimated at €31.6 million; • An Olympic Park that will host gymnastics, cycling, handball and other sport competitions. It is estimated to cost approximately €158 million; • An Olympic village with 32 buildings 12 story buildings (with over 17,000 beds) - estimated to cost approximately €360 million; • A tennis Olympic Centre with 16 courts (€35.5 million); • A rowing stadium at Rodrigo de Freitas Lagoon (€1.6 million to renew the stadium built for the Pan American Games); • An arena in Copacabana Beach for Beach Volley (€5.5 million); and The renovation of Maracanã Stadium (Opening and Closing ceremonies of the Olympics and soccer games): €316 million.

The Organizing Committee for the Olympic and Paralympic Games Rio 2016 is in charge of Games planning and operation. For that, the Organizing Committee relies on a budget of €2.45 billion that was approved by the International Olympic Committee (IOC). The organizing Committee in-

The stagnation of industry, which only grew 0.4 percent between January and November 2011, according to the Brazilian Institute of Geography and Statistics (IBGE), is one of the main reasons that GDP is growing at only one-third of Argentina’s growth rate, or half of Peru’s.

But the industrial figures are in stark contrast with the dynamism of the construction industry. Buildings are proliferating all over Brazil, and yet house prices have doubled or even tripled in the last three years in many cities, like Rio de Janeiro and Recife, further spurring the construction boom as well as fears of a real estate bubble.

Major infrastructure works for “Minha casa minha vida” the Olympics 2016 are sprouting (My House, My Life), a public like mushrooms in Brazil, housing programme launched by the government in 2009, is generating millions of jobs funding the construction of three million affordable housing units Domingues said, “The expected gross by 2014, to reduce the housing deficit economic impact of the 2016 Games estimated at 5.5 million units last year on the Brazilian economy is €40.1 by the Cities Ministry so despite the billion, according to a University of house pricing rises, things are improvSão Paulo study commissioned by the ing for the poor. In saying all of the Ministry of Sport.” above, it is as though Brazilians have Major infrastructure works for the just discovered an urgent need to deOlympics 2016 are sprouting like mushvelop efficient logistics and energy inrooms in Brazil, generating millions of frastructure. To be fair, with the beachjobs and drawing more than €46.9 biles, jungles, carnivals, sport events and lion in foreign investment in 2011. But a huge rise in the country’s global stathis thrust has failed to sustain economic tus and financial power everyone was growth, which according to the latest probably a little distracted. ■ projections is below three percent. tends to have the full budget funded by private organizations, but the three levels of government – federal, state and municipal - have assured the IOC that they will cover any funding need the Organizing Committee may face.

Rio 2016 spokesperson Bernardo

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feature Duty Free

A short history of Duty Free.....

…or One More Irish Contribution to Humanity The Irish have brought us many pleasures in life, not least Guinness and a fair few good whiskies. The Irish are also responsible for duty and tax-free shopping as we know it today

bought on their voyage.

In the main, of course, these items were liquor and tobacco - products purchased for the journey (remember in the olden days even short journeys could take weeks) - while perfumes started to be sold onboard ships most probably so that the people on the normally crowded vessels smelt that bit better. he world’s first airport duty free shop was opened In 1944 this right was extended to passengers on internaat Shannon Airport, established in 1942, by Dr tional flights – but it was Dr O’Regan who brought the concept Brendan O’Regan in 1947 to serve trans-Atlantic of duty free into the airport itself and in 1954 international airline passengers travelling between North Ameragreements on allowances were agreed in the New York Conica and Europe. Flights would stop at Shannon on vention on International Travel. both legs of the journey to refuel. Passengers had time to kill beAt this time Customs were still fairly anti the concept of fore continuing on their journey. Such a captive audience surely ground shops being allowed to sell duty free to travellers and had sales potential. The argument by Dr O’Regan and his team initially orders had to be taken landside (e.g. before passport was that, having passed passport control, the passenger had left control) and then the goods would be delivered in sealed bags the country and therefore the duties/taxes of that country beto passengers at the gate as they boarded. This method of sale came invalid. Therefore, everything bought after passport conis still used in the USA. trol should be considered as duty-free. The idea was given the In 1959 Customs & Excise in the UK finally allowed dutygo-ahead in Ireland and the shop was an instant success. free shops airside, initially In actual fact, diplomats Last year the global duty free and travel just for liquor sales; it was living in embassies (considnot until 1964 that tobacco, retail business increased to $37bn, an ered as foreign territory), the perfume and other gifts military and men at sea had increase of 8.8% over the previous year, could also be sold after passenjoyed duty-free allowances according to the research firm, of which port control. for years before the Shannon airport duty free sales accounted for $21.8bn The 1960s really saw airshop opened its doors. Indeed, port shopping start to develop, helped in no small part by two liquor had been available to British seamen for onboard conAmerican entrepreneurs: Charles (Chuck) Feeney and Robert sumption since the 1500s. In the 19th Century ships passenMiller who together started what is known as DFS (Duty Free gers were also allowed to purchase supplies without duty and Shops) one of the world’s largest and most influential retailers. were able to enter the country/countries they were visiting or DFS first started operating in Hong Kong and over the years returning to without paying import duties on items they had

T

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would be better off shopping around for the best price. Yet airhas expanded globally. In the early 1960s, DFS scored a coup ports are still filled with duty-free shops and travellers have by gaining the exclusive concession for duty free sales in Hathe added ability to order their goods online. Does duty-free waii that enabled the company to target Japanese travellers. shopping still offer a great deal or are we too much in love with Massive airport and aircraft development since the 1970s, the concept to let it go? combined with reduced airfares, has seen an incredible inLast year the global duty free and travel retail business crease in passenger traffic - millions of people travelling on increased to $37bn (€28.1bn), an increase of 8.8% over the business and pleasure, and all keen to shop! Terminals have previous year, according to the research Generation Research been developed with ever increasing space for ‘non-aeronautifirm, of which airport duty cal’ revenues such as food, beverages and, of course, duty and free sales accounted for tax free shopping. $21.8bn (€16.6bn).

Duty-free shopping was once considered one of the greatest Dubai Duty Free reperks of international travel. Airline crew and frequent travellers were besieged by requests from friends and colleagues, while holidaymakers would splurge on cheap alcohol, perfumes and cigarettes.

In 2000, the European Union established, for the first time, exceptional unlimited dutyfree access to the EU market for nearly all products originating in the Western Balkans (Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia, MonbelgraDe aIrport tenegro, Serbia and Kosovo) in Regulation (EC) HeaTHroW airporT corded sales of $1.1bilion The 1960s saw airport shopping (€838m) last year making develop, helped in no small part by two it the biggest airport retail operation in the world.

American entrepreneurs: Charles Feeney Sales analysis by Generaand Robert Miller who together started tion Research places Dubai what is known as DFS Duty Free ahead of London Heathrow and Seoul No 2007/2000). Only wine, sugar, certain beef products and Incheon International Aircertain fisheries products enter the EU under preferential tariff port, which both saw sales quotas, as negotiated under the SAAs. The regime was renewed hit the $1bn mark. in 2005, and due to expire on 31st December 2010. Therefore, Sheikh Ahmed bin on the 22nd February 2010, the Commission proposed to exSaeed Al Maktoum, presitend this autonomous preferential rule until 31st December dent of Dubai Civil Aviation 2015. The European Parliament voted in favour of the CommisFraNKFUrT airporT Authority and chairman of sion’s proposal on 13th October 2011 and the Council adopted Dubai Airports, said: “For the past several years Dubai Duty it on 24th November 2011. The tariff reductions under the new Free has been listed amongst the top three airport retailers in Regulation amending Council Regulation (EC) No 1215/2009, the world in terms of sales. Therefore it is a great achievement adopted today, are applied retroactively to allow exporters to to be placed at the top.” Dubai Duty Free accounts for 5% of the claim compensation for the duties paid in 2011. airport duty free business and 3% of the wider duty free and Then along came internet and bargain basement retailers, travel retail global business. bringing down everyday prices on luxury goods. Savvy travelColm McLoughlin, managing director of Dubai Duty Free lers began to question the value of duty free and whether they said: “We are obviously delighted to achieve the number Serbia Duty Free Allowance one spot based on our sales The following items may be imported into Serbia without incurring customs duty: of $1.1bn (€838m).”

• 200 cigarettes or 50 cigars or 250g of tobacco • 1L of wine and 1L of spirits Dubai Duty Free cele• 250ml of eau de toilette and a reasonable quantity of perfume • Jewellery brated its 25th anniversary and clothing • Two photo cameras, one video camera • One pair of binoculars. in December 2011. The retail • One pocket electronic calculator • Camping equipment • One bicycle • One operation now covers 15,000 engine • Sporting requisites • If portable, one musical instrument, one music square metres and has 3,500 player, one radio receiver, one laptop. members of staff. ■ cordeditorial@cma.rs

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techno talk tECh gifts for thE most romantiC day of thE yEar

What makes the day of love special? Is it the opportunity to indulge your partner or the delicious meal for two at a cosy restaurant? Correct, as you no doubt guessed, it’s all about the presents! With Christmas now behind us and the summer holidays a fair way off, now is the time to treat your loved one to a truly fabulous February 14th gift. Not everyone remembers Valentine’s day – chaps I’m referring to you – but if you receive one of these gifts you won’t be forgetting it in a hurry.

■ by Max WiLLiams

for

Him

3D Heaven SaMSUNG HT-D6750W 3D €1,100 The HT-D6750W package comprises two slim tallboy (1.3m) stereo front speakers which bolt together in the middle, and a pair of similar tallboy rears. They're joined by a small horizontal centre and a large (but light) subwoofer, which uses a 6.5-inch woofer and 10-inch passive radiator. Samsung bills this as a 7.1 channel system, but there are no extra enclosures.

Instead the main stereo loudspeakers each sport a separately driven, swivelling frog eye, which aims at the ceiling (or thereabouts). That counts, apparently.

Lighter Than Air SAMSUNG SERIES 9 €1,330 Before you get your hands on the Samsung Series 9 you know it’s going to be thin and light, but it’s only when you lift it out of the box you realise just how thin and how light it really is and how sleek it feels. The first time you see it, you’re also amazed by how Samsung has been able to fit in a surprising number of ports and connectors. The company has also managed to install a real processor to make a laptop that gives Apple, and every other PC maker, a run for their money.

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Fast & Smart Phone BLACKBERRY P’9981 BY PORSCHE DESIGN €1,550 Underneath, the P'9981 is identical to the 9900, featuring a 2.8" touchscreen display and a 5 megapixel camera on the back with 720p HD video recording. There's a microSD slot, Bluetooth, 3.5G support, WiFi and GPS, all running the latest BlackBerry 7 operating system. Most of the changes are external, with a stainless steel case, leather back cover and sculpted QWERTY keyboard that looks very different from a run-of-the-mill BlackBerry. It is slightly larger and heavier than the 9900 on which it is based and a lot more expensive too.

Euro Aggression DUCATI DIAVEL AMG €22,000 When the product of Ducati's union with Mercedes-AMG was unveiled at the Frankfurt Motor Show in September it solicited a standing ovation. The hand-built Diavel AMG Special Edition combines Ducati's two-wheeled style with Mercedes' impeccable performance and precision. The cam-timing on the Diavel AMG is set by hand, with the name of the technician responsible engraved on the engine casing. As you might expect, it scores high marks in both the aesthetic and speed departments.

Mini Bond Mobile ASTON MARTIN CYGNET €38,000 The new Aston Martin Cygnet is either a fabulously clever way to make a heap of money and cut CO2 emissions, or an abomination not fit to wear the iconic winged badge. However, this is a car aimed at those with an addiction to luxury brands and deep enough pockets not to worry about the odd zero here and there. The sort of person who might spend €3000 on a made-to-measure suit or €5000 on a handbag. Plenty of people much cooler than I seem to think this is their answer to their enormous car enormous attention problems. cordeditorial@cma.rs

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techno talk

for

Glamour Gift

Her

GHD SCARLET SET €200

The new GHD limited edition scarlet collection set oozes 20's glamour and style. It's sophisticated, classy and a perfect gift for any woman. Forget faking compliments on bad hair days, with these new limited edition straightners she will always look sleek and frizz free.

The set includes a GHD gold classic styler with delicious red plates, a protective plate guard, scarlet inspired heat resistant styler roll bag and two sectioning clips.

Star Phone VERTU CONSTELLATION €4,720 The World’s poshest phone purveyor Vertu has taken a break from international jetsetting to unveil its first touchscreen mobile. Wrought from fine metals and leather and probably handwashed with unicorn tears, it’s got a 3.5inch AMOLED display, A-GPS, 3G and Wi-Fi, and runs cutting-edge OS Symbian. Bespoke, lavishly handcrafted services include Select, which finds high-class things in any locale, Concierge, which gets you access to them, and a Berry Bros “pocket sommelier”, if you please.

Italian Style VESPA GTS SUPER €5,210 The Vespa GTS 125 SuperSport is a blend of distinctiveness and character, as well as sportiness and performance. The 300 electronic injection engine brings out maximum aggressiveness, whether in the city or on country roads. The dedicated graphics and the sport saddle with white piping and thermobonding complete the sporty look of the Vespa GTS SuperSport. The Sport versions of the Vespa GTS Super and Vespa S offer a modern interpretation of an extraordinary competition heritage.

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Luscious Lens Leica M9-P €6,000 Leica According to legendary fashion photographer Rankin, the Leica M9-P is the most sought-after professionalstandard small camera currently available. "It offers complete precision – from its lenses, to its fast, quiet mechanics," he says. Pocket-size, the M9-P is the world's smallest interchangeable lens camera – much lighter than a bulky SLR – meaning it's ideal for her bag.

It hardly makes a noise and Leica has even removed its trademark red dot so as not to draw attention to the user or the equipment. We like the Leica a lot.

Ultimate Fashion Accessory Fiat 500 by Gucci €17,000 The tiny city car has been given a makeover by Gucci. There are two models to choose from, either in black or white, with bumper trim, wing mirror caps and shoulderline all highlighted in chrome. Black cars get an interior trimmed in black and white, while white cars get black interior trim. Special Gucci-branded 16-inch alloys which hide green-painted brake calipers are complimented by Gucci script on the B-pillar and bootlid. Gucci’s trademark greenred-green stripe along the car’s side and on the seats, carpets, keyfob and even seatbelts.

HIs

HERs

Sleepless Nights HiCan Bed €47,000

If you thought beds were just built for sleeping, think again – I highly doubt you did. The HiCan bed design is so tech-heavy it is a virtually a stand-alone room with everything you need to read, relax and remain comfortably isolated and asleep or to stay awake and entertained... even without your partner there. The bed has its own video projector with a retractable screen at the foot of the bed, a state-of-theart sound system, a multimedia PC, a gaming console, and a pair of reading lights for some late-night reading.

cordeditorial@cma.rs

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travel Ten of the best and closest romantic getaways for a perfect Valentine’s Day

Romantic Retreats

I

1/10

n life, there are certain “special” days that can easily be forgotten – women know full well that men have the innate ability to forget their birthdays yet somehow remember the exact date of nearly every major, and minor for that matter, sporting occasion on earth. Valentine’s Day gentlemen is one of the days that you should not forget, including birthdays – children and hers - and anniversary’s – your wedding, first kiss etc.

To the ladies, amongst our dear readers, 2012 might be a nice time to mix things up and book a luxurious break for you and your man. Whether you are a new couple, celebrating the day for the first time, or lifelong lovers, the 5 destinations to follow will certainly put you in the mood for romance. Leave the kids, stress and work at home and “enjoy” each other’s company in the world’s slightly less obvious but ideal ‘couplely’ surroundings.

Bruges, Belgium If your idea of a romantic getaway involves idyllic winter scenery and a good helping of the World's best chocolate, then we can thoroughly recommend Brugge (or Bruges). Canals, medieval buildings and the small size of one of the most visited places in Belgium come together to create a very cute, romantic place to getaway. Ideal for a weekend and those who enjoy ancient architecture and fine gastronomy. And don’t forget Belgium beer and pommes frites (shoestring fries) with mayonnaise – perfect for sharing in the cool weather!

2/10 Isle of Skye, Scotland Firstly, Scotland itself is a wonderfully romantic country with stunning scenery, old-fashioned hospitality and world-class accommodation. The country has a superb collection of luxury hotels, spas, castles and lodges, as well as intimate and remote guest houses. The Isle of Skye and the West of Scotland is an area of outstanding natural beauty.

Mountains and moorland, lochs and rivers, forests and woodlands, and miles of spectacular coastline. The Isle of Skye, Scotland’s largest and most romantic island, lies just off the mainland.

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3/10 Gotland, Sweden On the southernmost tip of the Swedish island of Gotland, in a magical landscape of endless sea views on the horizon, sandy beaches and jutting rock formations called raukar, you will find Suderhälsan.

Suderhälsan is a spa that takes responsibility not only for you and your partner’s well-being, but also for the fragile environment found on the island. The setting is beautiful, peaceful and above all romantic.

Many of the heated treatment pools are outdoors so that guests can enjoy their seaside surroundings even in the winter months.

4/10 Tromsø, Norway Tromsø is a city and municipality in Troms county, Norway. The city is the ninth largest urban area in Norway by population, and the seventh largest city by population. The area has been inhabited since the end of the ice age, and the Sámi culture is the first known culture of the region. Tromso is surrounded by beautiful Arctic scenery, with fjords, islands & alpine mountain peaks and offers the exotic Arctic lights. ‘Out of this world’ isn’t entirely scientifically accurate but the sights will make you and your partner think it is.

5/10 St. Petersburg, Russia A Russian fantasy city, built on a swamp cleared by Peter the Great in the 1703, St Petersburg was the Russian capital until the revolution of 1917. The grand palaces, impressive boulevards and church domes were all built to stun, which they still do today. St. Petersburg is the spiritual soul of Russia. Known as the Venice of the north it does not disappoint. It is off the beaten track of typical Western Europe tourist destinations and it is dark and brooding as it is opulent and exotic. cordeditorial@cma.rs

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6/10 Carcassonne, France No matter which direction you are coming from, you can’t miss the imposing silhouette of the City of Carcassonne which is encircled by a huge double row of fortified walls. There are few better places to explore than the fairytale city of Carcassonne. The location boasts a UNESCO World Heritage site, and when the throngs of day trippers depart you will have the place almost to yourself. Enjoy an aperitif on the terrace of the castle hotel as the sun sets, taking in the spectacular views, before sitting down to an opulent French dinner.

7/10 Lake District, England We love The Lake District (and not because this writer happens to be English!) - it’s perfect for a romantic weekend break with plenty of things to do. Throughout through the year it has a real beauty but when the sun is shining it is probably one of the most stunning places you can imagine. When the weather doesn’t play ball, there’s always plenty of great country pubs to have your drink in front of a roaring fire! And as everyone knows, a fire and a couple of glasses of wine does nothing to harm a romantic mood.

8/10 Lake Bled, Slovenia Don your thickest socks, strap on a pair of snowshoes and get ready to explore the landscape around the iconic Lake Bled, a section of the Julian Alps with some of Europe’s loveliest terrain. From the highest point at Mount Triglav, limestone peaks zigzag outwards. Traverse deeply cut gorges, snow-dusted forests, meadows and glacial lakes on short walks along the Italian and Austrian borders hand-in-hand before ascending the ridges of the Bogatin plateau for a breathtaking overnight expedition.

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9/10 Tallinn, Estonia Try Tallinn for size - it has all the makings of a winter city break within the confines of its snug medieval walls. Dip into one of the many basement restaurants and beer cellars for hearty stews and homemade beers that’ll warm you right through. But for the genuine Baltic big freeze, cross the sea to watch blood-orange sunsets over the barely trodden snowscapes of mystical Muhu Island. Try a Muhu hay bath in the spa, or cuddle in the private cinema with coffee and crumbly gingerbread.

10/10 Cappadocia, Turkey Beyond the Aegean and the Mediterranean, Turkey feels the chill. In the east, pretty Cappadocia’s ancient moonscape of rock formations is smothered with a dusting of snow, making a tour of the lumps and bumps a magical must. Look out for the Red River, salt lake and chimneys (volcanic rock eroded into tall pinnacles) - every bit as fairytale as they sound. For masses of history (and a glossy new hammam to boot) check into the Kelebek Pension, one of many cave hotels sliced artfully into the rocks.

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chill out

Fly-Sized Frog

During recent field surveys in southern Papua New Guinea, scientists found P. amauensis and another new species of tiny frog, Paedophryne swiftorum, which measures about 8.6 millimetres.

The frogs are so small it’s hard to see their earth-coloured skin patterns with the naked eye, so scientists took pictures and then zoomed in using a digital camera like a microscope.

The world’s smallest known vertebrate is a frog the size of a housefly, a new study says.

At an average of 7.7 millimetres long, the newfound Paedophryne amauensis is a hair smaller than the previous record holder, the Southeast Asian fish species Paedocypris progenetica, whose females measure about 7.9 millimetres.

Cows Replacing Cocaine

Barbie Offends Morality Police

Colombian President Juan Manuel Santos said in late January that the country's largest rebel group was increasingly selling its cattle to finance South America's longest-running insurgency as income from trafficking cocaine drops.

Colombia's Revolutionary Armed Forces of Colombia, or FARC, has been reeling from more than a decade of a U.S.-backed military offensive that has dealt it major blows and cut cocaine output.

The rebels have for decades funded their movement through control of coca production and have built up ties with drug gangs in some parts of the country.

The billions of dollars a year in cocaine money has been one of the main reasons why Colombia's war has continued for nearly five decades.

Iran's morality police are cracking down on the sale of Barbie dolls to protect the public from what they see as pernicious western culture eroding Islamic values, shopkeepers have said.

As the West imposes the toughest ever sanctions on Iran and tensions rise over its nuclear program, inside the country the Barbie ban is part of what the government calls a "soft war" against decadent cultural influences.

Iran's religious rulers first declared Barbie, made by U.S. company Mattel Inc, un-Islamic in 1996, citing its "destructive cultural and social consequences." Despite the ban, the doll has until recently been openly on sale in Tehran shops. The new order forces shopkeepers to hide the leggy, busty blonde behind other toys.

Ireland's Billion Euro Home An out of work Irish artist has built a home from the shredded remains of €1.4 billion, a monument to the “madness” he says has been wrought on Ireland by the single currency, from the spectacular construction boom to bust.

Frank Buckley built the apartment in 76 |

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the lobby of a Dublin office building that has been vacant since its completion 4 years ago at the peak of the doomed construction boom, using bricks of shredded euro notes he borrowed from Ireland’s national mint.

“It’s a reflection of the whole madness that gripped us,” Buckley said of what he calls his “billion-euro home.”

“People were pouring billions into buildings now worth nothing,” he said. “I wanted to create something from nothing.”

“Smart“ Pill A new “intelligent” pill that tells patients how to better follow doctors’ orders and take medication properly is to go on sale in the UK within months.

The tiny edible microchip records precise details of medication programmes through a monitoring “receiver” patch attached to the shoulder or arm. It also alerts

a patient to when the next dose is due and records if they’re getting enough sleep and exercise. Costing about €60 a month, medical experts said the new “intelligent medicines” could revolutionise the way patients take drugs, which will allow them to better follow doctors’ orders.

Figures from the World Health Organisation suggest that up to 50% of patients do not take their medications properly.

Shearing in Brazil 2016?

The New Zealand Farmers Federation, a rural lobby group, claims wool shearers should be recognised alongside the world's finest athletes for their "sport".

Jeanette Maxwell, a spokesman for the federation, describes top shearers as "athletes who take it to another level". She said: "I can testify to the physical effort shearing takes. Surely, the time has come to elevate shearing's sporting status to the ultimate world stage.”

"Shearing could be a demonstration sport at the Commonwealth Games, if not the Olympics itself." Maxwell said. NZ’s human population of about 4.4 million is outnumbered by a national sheep flock of almost 40 million, with most lamb meat being exported to the Middle East, UK and Asia.

Diva Fly Beyonce may be one of the biggest pop divas out there, but she isn’t the only diva with that name. A previously unnamed species of horse fly with a glamorous golden rear end has been named ‘Beyonce’ because it is the “all-time diva of flies,” researchers say.

Bryan Lessard, a researcher from Australia’s Commonwealth Scientific and

Planet Spotters Wanted Members of the public are being asked to join the hunt for nearby planets that could support life. Volunteers can go to the Planethunters website (www.planethunters.org) to see time-lapsed images of 150,000 stars, taken by the Kepler space telescope. They will be advised on signs that indicate the presence of a planet and how to alert experts if they spot them.

“We know that people will find planets that are missed by the computer,” said Chris Lintott from Oxford University.

The Kepler space telescope, launched in 2009, has been searching a part of space thought to have many stars similar to our own Sun. Its most exciting moment to date has been the discovery of Kepler 22b, a planet close in size and temperature to Earth.

Industrial Research Organization, is responsible for officially describing the fly and naming it Scaptia (Plinthina) beyonceae, according to the Australian National Insect Collection.

Other organisms have also been linked to the likes of Harrison Ford, Matt Groening (creator of “The Simpsons”), Mick Jagger and other celebrities, including a beetle named after Roy Orbison. cordeditorial@cma.rs

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90 February 2012 | 77

fashion Fashion this season is all about the individual

Style Statement This year, it is impossible to miss the trends in women’s fashion: couture sportswear, the twenty-first twenties, and print to name but a mere few. That being said, one thing that will really stand out in 2012 is this: personality

T

here are plenty of superstars who are proof that true individuality makes a great look – just think ‘Gaga’. Many new talented designers are emerging, with both clothes and personal identities that show a lot of character and embracement of this new trend, but as always the upstarts will have to (poker)face down the established fashion houses. 2012 is, more than ever, the era of brand-building and social media. Individuality is going to be key for both designers and yourself. Ladies, the following are our favourites of the month.

J Brand

Super Skinny Jeans With a shiny gloss finish adding a hint of rock and roll styling, these super skinny jeans are an on-trend take of on an off-duty classic.

Pair with stilettos for an edgy take on glamour. price:

€ 315

price: Diane Von Furstenberg

€ 624

Umeki Dress

Marc Jacobs

In a soft colour palette that is an addition to your transitional wardrobe, the dove grey dress is crafted from pure silk for an ultraflattering drape. A versatile day-to-night piece.

Single Shoulder Bag Make a simple outfit a stylish and individual one with the addition of Marc Jacobs’ quilted leather single shoulder bag in brighter than bright yellow. You will be noticed!

price:

€ 423 78 |

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pRice:

€ 715

casadei

Suede Platform Pump

FreYWiLLe

Messager d’amour

pRice:

€ 538

These eye-catchingly bright shoes by Casadei, with turquoise platform heels, are a wearable style with a slim high heel, almond toe and smooth suede finish.

A perfect gift for your beloved who can wear your love openly and close to her heart. Available in all design collections, the perfect harmony between art and love is clear for all to see with the Messager d’amour.

FREYWILLE boutique, Terazije 26, Belgrade

aLeXander Wang

Grecian Dress The sports luxe trend takes on a Grecian spin with Alexander Wang’s beautifully draped dress.

It features a double– layered top section and flattering waist belt.

MoscHino

Cheap and Chic Denim Jacket

Moschino Cheap and Chic’s denim jacket is both stylish and wearable. The chic design is finished with a peplum waist, nipping in the waist for a truly ladylike shape.

pRice:

€ 715

raLPH Lauren BLue LaBeL

Tiered Ruffle Poncho

pRice:

€ 818

A versatile choice, this poncho from Ralph Lauren Blue Label is a staple piece for spring time. Wear with skinny jeans and a pair of chunky ankle boots for a striking day look.

pRice:

€ 793 cordeditorial@cma.rs

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90 February 2012 | 79

erdeM

Connelly Trousers

Preen

Preen Polly Dress

Let your legs do the talking in these statement, slim-leg trousers from acclaimed Canadian designer Erdem. Finished in fine silk, they will add kudos to any bold wardrobe.

So wrong it’s right, bright red with fuchsia has never been hotter. There’s no better way to brighten the dull winter months than with a dash of next season colour-blocking.

pRice:

€ 884

pRice:

€ 1,000 notte BY MarcHesa

One-Shoulder Kaftan Gown Notte by Marchesa’s beautiful one-shoulder kaftan gown in tangerine silk features a flowing column silhouette. This piece of eveningwear has a showstopping effect.

rM BY roLand Mouret

Pigalle Dress

A new addition to the iconic label’s collection of classic, statement dresses, this sleeveless design is masterfully constructed to make your silhouette look at its finest.

pRice:

€ 1,100

HerVe Leger

Cut-out Bandage Dress Do your curves the ultimate favour with this striking bandage dress. This silhouetteskimming miracle is given an added dose of sex appeal with a cut-out back.

pRice:

€1,545 80 |

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pRice:

€ 1,575

giordano torresi

aLeXander McQueen

Britannia Skull Box Clutch pRice:

€ 1,813

This striking Britannia Skull box clutch features a dove grey suede exterior emblazoned with a crystalembossed Union Jack. This is a statement piece that is ideal for any party.

Pucci

Asymetric Lace Dress

Sexy Africa

pRice:

€ 460 Giordano Torresi translated the inspirational trip to the wild nature of Africa in his latest edition for strong and passionate women.

Animal print laser - cut edged in gold with wooden plateau and heel sandals are an elegant balance that captures the raw spirit of Africa.

Giordano toressi, Dobracina 5, Beograd

Fashion’s love affair with lace continues with this intricate dress. This bodycon dress has one long, fluted sleeve, gathering at the waist for a beautifully feminine silhouette.

JuditH LeiBer

Sequin Cupcake Clutch Bag Judith Leiber’s cupcake-shaped bag is a quirky choice with its crystal-encrusted façade. With a detachable chain strap and push lock, this champagne-hued bag is a sweet fashion treat.

pRice:

pRice:

€ 4,790

€ 1,969

MuLBerrY

Leopard Print Bayswater

You can rely on Mulberry for the “I must own it” bag of the year. Packing a punch in oh-so-strokeable animal print, this little beauty is destined to attract wolf whistles in the street.

pRice:

€ 2,425

cordeditorial@cma.rs

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90 February 2012 | 81

profile

Opportunity is

Here and Now Young, enthusiastic and energetic, Sagiv Meger came to Serbia in 2007 as a the country director of Plaza Centers Serbia. He is enjoying his stay in Belgrade and Serbian cuisine and aside from being a successful businessman is a gentle father to two beautiful little girls

Sagiv Meger, Country Manager, Plaza Centers Serbia

every day. In Plaza Centers we are all aware of how important team work is and how much a “healthy” business environment impacts your productivity. When you know you are surrounded

W

by people who you can rely on without fail you can be more re-

Prior to Serbia, I spent four years in Angola, as the COO of a com-

the real estate sector, conducting its activities in Hungary, Poland,

pany who supported over 50 various projects, ranging from tel-

Romania, Latvia, Czech Republic, Serbia and India. Plaza Centers

ecommunications, real estate and agriculture to military intelli-

has been recognized as one of the symbols of quality and innova-

gence. This is where I gained an extensive range of first-hand ex-

tion which makes me very optimistic regarding our investments

perience in various fields of management and execution. It is al-

and projects in Serbia. As far as Kragujevac is concerned, we have

so where I acquired a love for cating meat on a daily basis, which

had a good experience, and we believe that the city has good po-

comes handy in Serbia.

tential for further development. Therefore, we are looking forward

hen I first joined the company in late 2007, I was ap-

laxed and calm, especially when you need to focus on large and

pointed as the country director for Plaza Centers

demanding tasks.

Serbia, and in 2009 was also appointed as the coun-

Being a manager, especially a managing director, brings a lot

try director for the Czech Republic. This brought new challeng-

of responsibility. Plaza Centers is listed on both the London and

es both personally and professionally, but also new opportunities.

Warsaw stock exchanges and is one of the worldwide leaders in

Becoming a part of Plaza Centers was a natural continuation of my professional career which brought me to the real estate in-

to the opening of Kragujevac Plaza on the 20th of March 2012.

Being optimistic also applies to our projects in Belgrade.

dustry. Working for an international company like Plaza Centers

What thrills me in Serbia is the fact that Belgrade is full of

offers its employees the possibility to meet great professionals in

people every night and that the city never sleeps. We are similar

the field, as well as plenty of other opportunities to meet new peo-

like that! Perhaps it will surprise you but I think that the Israelis

ple – from your own employees and team with whom you work to

have many similarities with the Serbs. They have suffered a

officials, partners and service providers.

lot, fought a lot, and want to live a full and happy life. Serbs are

Plaza owes its success to its fundamental knowledge of the local market, the quality of our architectural and construction teams, operational “know-how” and professional and dedicated employees.

Employees are the pillar of our company; there are hundreds of team members around the world, in the various countries where we conduct business, making Plaza Centers a large and well coor-

very warm and friendly people, and what is most important, as

Plaza owes its success to fundamental knowledge of the local market, the quality of its architectural and construction teams, operational “know-how” and professional and dedicated employees

dinated team.

We strongly believe in treating our employees and service pro-

an Israeli, is that I feel very welcome here. Wherever I am with

viders with respect, appreciation and make an effort to invest in

neighbours, friends, business partners or officials – I always feel

them. Starting with the first person you meet in our reception,

the Serbian hospitality.

to our engineers and managers. I know that Plaza Centers is the

I strongly believe in personal growth and I try my hardest to

ideal work place for all eager, open-minded, decent and dynamic

grow both professionally and personally, inevitably becoming a

people in Serbia.

better leader for my team. Books which have served me well are

After all these years, both my team and I, who are my professional support, find motivation in the challenges that we face

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